US points to ‘Positive Momentum’ in ongoing trade negotiations with India

By R Anil Kumar

Washington, Friday, November 14. The United States has signalled that ongoing trade discussions with India are progressing constructively, with senior officials describing “a lot of positive developments” and expressing optimism that an agreement could be reached before the end of 2025.

Speaking to reporters in Washington, a senior administration official revealed that talks with New Delhi are advancing on two key fronts: the formulation of a reciprocal trade framework and the resolution of concerns over India’s continued imports of discounted Russian oil.

The official acknowledged that the two issues are being handled concurrently but expressed satisfaction with recent market adjustments. “We have two things going on with them. Of course, we have a reciprocal trade negotiation, but we also have a Russian oil issue, where we’ve seen market improvement on that end,” the official said, adding that “more positive progress may come before the year’s end.”

At the centre of the discussions lies a reciprocal trade agreement aimed at harmonising tariffs and expanding market access for goods and services between the two nations. Such an arrangement would seek to address long-standing irritants including high Indian tariffs on American motorcycles and agricultural products, and, conversely, India’s desire for restored preferential trade status under the US Generalised System of Preferences (GSP).

The deal is also expected to cover issues like intellectual property rights, data flows, technology transfer, and the facilitation of service-sector mobility—particularly for Indian IT professionals seeking greater opportunities in the United States.

While trade optimism rises, Washington continues to watch New Delhi’s relationship with Moscow. The so-called “Russian oil issue” has been a recurring theme in US-India dialogue since 2022, when Western sanctions altered global energy flows. However, officials now say market conditions and pricing trends have shown improvement, indicating a gradual easing of pressure on this front.

The remarks came on the same day the White House announced the finalisation of preliminary trade accords with four Latin American nations—Argentina, El Salvador, Ecuador, and Guatemala. These agreements are designed to reduce tariffs on imported goods unavailable from domestic US producers.

Officials also cited “constructive conversations” under way with countries across Asia and Europe, mentioning recent engagement with Vietnam, Indonesia, and Switzerland. Analysts note that such bilateral efforts align with the Trump administration’s broader pivot away from large multilateral trade frameworks in favour of individual, country-specific deals.

The renewed focus on India follows the appointment of Sergio Gor, a close ally of President Trump, as the new US ambassador in New Delhi. Speaking at Gor’s swearing-in ceremony earlier this week, President Trump hinted that tariff concessions on Indian exports might be forthcoming, complementing the ongoing negotiations.

Trade between the two countries totalled nearly USD 190 billion in 2024, representing one of the fastest-growing economic relationships globally. Both sides have publicly expressed ambitions to substantially raise bilateral trade volumes over the coming decade.

Analysts suggest that if the negotiations advance as planned, Washington and New Delhi could unveil a limited trade deal before the end of the year, potentially as a precursor to a broader trade arrangement later in the decade. Such an outcome would mark a significant breakthrough after years of stalled talks over tariffs, e-commerce regulations, and data localisation norms.