Stories
India Draws Red Line on Trade Deal With US as Negotiations Reach Plateau
- •Finance Minister Nirmala Sitharaman stated that talks have reached a plateau, making further negotiations very difficult.
- •Commerce Minister Piyush Goyal emphasized that tariffs on Indian exports must be lower than competitor countries for any deal to occur.
- •External Affairs Minister S. Jaishankar highlighted the protection of small producers and stressed that terrorism remains a critical non-negotiable security concern.
- •Key sticking points include US reluctance to lower tariffs for India compared to China, threats over Russian oil purchases, and objections to FEMA regulations.
- •While negotiations are ongoing, both sides acknowledge that reaching a final breakthrough will not be easy under current conditions.
Key Questions Answered
Commerce Minister Piyush Goyal stated that the US must establish a structure ensuring that tariffs on Indian exports are lower than those of competing countries to give India a competitive advantage. India insists it will not rush or make a deal under pressure until this condition is met.
Finance Minister Nirmala Sitharaman noted that negotiations have reached a plateau where giving or taking anything further is very difficult. Sticking points remain over tariff relief, market access, and unacceptable US conditions regarding Russian oil and India's internal FEMA regulations.
External Affairs Minister S. Jaishankar emphasized that terrorism is a highly sensitive issue for India, and a trade deal cannot happen at the cost of national security. He criticized the lack of sufficient sensitivity toward cross-border terrorism, warning that cozying up to India's enemies while pursuing trade creates serious roadblocks.
