India and the US have begun talks on a bilateral trade agreement. The US team is led by Brendan Lynch and Rajesh Agarwal is the negotiator for India. Both countries are focusing on resolving tariff disputes and exporter issues.
US-India Trade: Talks have begun to ease trade tensions between India and the United States. The US team is being led by US Trade Representative Brendan Lynch, while Rajesh Agarwal, Special Secretary in the Department of Commerce, is the chief negotiator for India. This dialogue is focused on a proposed bilateral trade agreement between the two countries.
Tensions Rise Due to Tariff Disputes
Relations between the US and India soured following the imposition of heavy tariffs on India by US President Donald Trump. These tariffs were creating uncertainty, especially for Indian exporters. The US imposed a 25 percent duty and a 25 percent additional penalty on Indian goods for the purchase of crude oil from Russia, further increasing the need for negotiations.
US Team and Indian Delegation
Brendan Lynch, Assistant US Trade Representative for South and Central Asia, is leading the US team. He is accompanied by various US officials. The Indian team is led by Rajesh Agarwal, Special Secretary in the Department of Commerce. Lynch arrived in India late Monday and held a day-long meeting with the Indian team.
India Calls Tariffs Unfair
India has termed the US duties as unfair, stating that they are affecting Indian exporters. In February, leaders from both countries had directed officials to negotiate a proposed trade agreement. The first phase of the agreement aims to be completed by autumn 2025. So far, five rounds of talks have been held. The sixth round of talks, scheduled for August 25-29, was postponed due to high import duties.
Commerce Ministry's Response
A senior official from the Commerce Ministry stated that this meeting between Lynch and Indian officials should be viewed as a preliminary discussion rather than the sixth round of talks. He also mentioned that India and the US are now discussing trade issues virtually on a weekly basis.
Reactions from Prime Minister Modi and President Trump
Prime Minister Narendra Modi had responded warmly to US President Donald Trump's positive assessment of trade relations between the two countries. The Prime Minister's Office has repeatedly stated that India will prioritize national interest and market dynamics in its energy procurement.
India has clarified that its crude oil procurement from Russia is based on its national interest and energy security needs. India has emphasized that the protection of the interests of farmers, dairy producers, and MSMEs will be a priority in all trade agreements.
