As US Trade Envoy lands in India, analyst says ‘narrow’ package could deliver an early deal
US trade envoy Brendan Lynch met India’s negotiator Rajesh Agrawal as talks resumed. Analysts say a narrow package on tariffs, agriculture, and standards could lead to an early deal despite oil tensions.
Washington: As US Assistant Trade Representative for South and Central Asia, Brendan Lynch, travels to India for trade negotiations on Tuesday, experts in Washington believe that the resumption of talks indicates a positive trend and India would decide “how and whether” to address US concerns.
Siddharth Sharma, an Associate for India and South Asia at McLarty Associates, a consultancy in Washington, DC, argued that the direction of the talks is “positive” and an early agreement may be possible if both sides keep the deal “package narrow.”
“If negotiators keep the package narrow across tariff relief, agriculture access and standards, an early agreement is realistic. The direction is positive, though timing will depend on details,” he told IANS.
Lynch is in India for a one-day meeting with India’s chief trade negotiator, Rajesh Agrawal, scheduled for Tuesday.
Sergio Gor, President Donald Trump’s nominee for US Ambassador to India, called New Delhi a “strategic partner” during his Senate confirmation hearing last week and promised to strengthen defence and economic ties with New Delhi.
Gor also revealed that India and the US are close to a trade deal.
“We’re actively negotiating with the Indians right now. We’re not that far apart on a deal. In fact, they’re negotiating down nitty-gritty of a deal,” he said.
Sharma asserted that Gor’s statements are encouraging for both sides to conclude an early agreement.
“Gor clearly outlined the administration’s economic agenda for the United States and India: fair and reciprocal trade, better market access and regulatory transparency, a target of $500 billion in bilateral trade by 2030, and deeper cooperation in AI, semiconductors and critical minerals. It is an encouraging signal for ties with a key ally, provided follow-through reduces nontariff barriers and clarifies standards,” he noted.
However, India’s purchases of Russian oil remain a sticking point. Gor emphasised that persuading India to move away from Russian oil was a “top priority” for the Trump administration.
Last week, US President Donald Trump pressured NATO and G7 countries to halt buying Russian oil before imposing new sanctions.
“I am ready to do major sanctions on Russia when all NATO nations have agreed, and started, to do the same thing, and when all NATO nations stop buying oil from Russia,” he posted on Truth Social.
In an interview with Fox News on Friday, Trump also said that his decision to put punitive levies on New Delhi caused a “rift with India.”
“India was their biggest customer. I put a 50% tariff on India because they’re buying oil from Russia. That’s not an easy thing to do. That’s a big deal, and it causes a rift with India,” Trump added.
Wendy Cutler, Senior Vice President at the Asia Society Policy Institute, analysed India’s strategy to deal with the Trump administration and the way forward.
“India has been muted in issuing public comments critical of the Trump administration. That would only add fuel to the fire. India will need to decide for itself how and whether to address US concerns, while taking steps to reduce its dependence on the US market,” she said.
Last week, Trump also announced that his administration had resumed trade negotiations with India.
“I am pleased to announce that India, and the United States of America, are continuing negotiations to address the trade barriers between our two nations,” he posted on Truth Social.
Trump described Prime Minister Narendra Modi as a “very good friend” and said he looks forward to speaking with him “in the upcoming weeks.”
Reacting to Trump’s remarks, PM Modi posted on X, affirming the strength of the India-US relationship and expressing confidence in the outcome of the ongoing trade dialogue.
“India and the US are close friends and natural partners. I am confident that our trade negotiations will pave the way for unlocking the limitless potential of the India-US partnership,” PM Modi wrote.
