Washington and Delhi are very close to finalising a trade deal, US President Donald Trump has said, as high-level talks between the two sides continue.Were very close to a deal with India where they open it [the market] up, Trump told reporters at the White house on Wednesday.Later in the day, he reiterated that the deal with India was very close when asked about upcoming trade agreements in an interview with broadcaster Real Americas Voice.India and the US have been locked in intense negotiations over the past few months, aiming to reach an agreement before steep tariffs kick in.Trump had first announced 27% tariffs on Indian goods in 2 April as part of a wider trade policy move.
While the tariffs were initially paused until 9 July, the US later extended the deadline to 1 August.An Indian delegation is in the US this week for discussions on the agreement, Reuters reported, citing sources in the Indian government.Last month, a team of Indian officials extended their stay in Washington for another round of talks, raising questions about what was holding up the agreement.Both sides have sounded optimistic about the deal.
On Tuesday, Trump signalled a potential breakthrough, saying that the US would gain access to the Indian market as part of the agreement.Suggesting that the deal with India was following a similar track to a recent agreement with Indonesia, where Jakarta granted full access to American companies Trump said: India is basically working along that same line.
We are going to have access to India.Indian Commerce Minister Piyush Goyal said this week that talks are progressing at a fast pace.
However, a couple of weeks ago, he had cautioned that India did not negotiate trade agreements based on deadlines and would only enter deals that served its national interest.While the two sides have been negotiating for months, key sticking points persist, particularly over agricultural access, auto components and tariffs on Indian steel.For years, Washington has pushed for greater access to Indias farm sector, seeing it as a major untapped market.
But India has fiercely protected it, citing food security, livelihoods and interests of millions of small farmers.Until recently, the US was Indias largest trading partner, with bilateral trade reaching $190bn.
Trump and Modi have set a target to more than double this figure to $500bn.India has already reduced tariffs on a range of goods - including Bourbon whiskey and motorcycles - but the US continues to run a $45bn (33bn) trade deficit with India, which Trump is keen to reduce.Meanwhile, Trump has recently renewed his aggressive tariff plans from earlier this year.
He has issued warning letters to dozens of countries, signalling his intent to impose steep tariffs starting 1 August.The list of targeted nations includes all of Americas major trading partners - the European Union, Canada, Mexico, Japan and South Korea.On Wednesday, in addition to the deal with India, he said the US could possibly make a deal with (the) EU soon.Source: BBC- Agencies