The India US trade talks intensified this week as Washington praised India’s unprecedented market-access proposals. As US trade negotiations progressed quickly, US pressure on India increased dramatically. Greer expressed an unusual level of optimism during his testimony before Congress. Additionally, he stated that India had made unprecedented proposals for market access. These comments shocked Senators who are overseeing Global Trade Relations, which are currently under great strain. The fact that India responded to the need for a deal is a change from previous patterns of behaviour in negotiations. Furthermore, the US viewed India’s response as being of interest due to its strategic importance to the United States. Finally, both countries were preparing for a significant agreement.
Greer testified that there had been considerable effort from the negotiators who had been working in New Delhi. He indicated that there had been constant engagement between the US Trade Representative’s Office and India. Moreover, he said India delivered “the best we’ve ever received as a country.” Greer was questioned by lawmakers regarding decreasing international markets for exports. Greer indicated that India presents a viable and sizeable option to expand its export opportunities. Farmers with reduced export markets due to decreased demand from China are cautiously optimistic about the potential benefits of this opportunity. Furthermore, U.S. officials believe India offers substantive proposals for development following several years of limited growth.
Talks broaden as sectors expand beyond agriculture
According to Greer, there are many structural obstacles confronting producers of agricultural commodities in the U.S. He indicated that there is a tremendous amount of U.S. inventory that could be dumped into India. In addition, he emphasized the need for diversification to provide resiliency to America as a nation. He also mentioned that Chairman Moran had called, “India was such a tough nut to crack”. Therefore, he felt that we had made more progress in our discussions regarding India than previous administrations. He also mentioned that U.S. export opportunities in Europe, Southeast Asia, and other places had improved significantly as a result of these discussions, giving us significantly better leverage with India. Lastly, both sides are actively negotiating a parallel trade structure between them.
Tariff questions and strategic alignment shape India US trade talks
Greer indicated that larger tariff matters will begin to surface in the near future. He noted aviation components within the 1979 Aircraft Agreement (Flying Papers), and cited that conversations with India are “relatively far along”. Senators have expressed interest in growing the market for ethanol exports to India as well. In addition, officials emphasized that enforcement should remain a high priority. Greer said, “They respond to enforcement.” The administration used tariffs to secure compliance globally. India–US trade ties expanded significantly during recent years. Negotiators now aim to finalise the first tranche soon.
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