India-US trade deal '90-per cent-plus there,' says senior US official ahead of key visits

After years of trade being the biggest sticking point in the India-US relationship, the two countries appear close to a breakthrough. A senior US State Department official said the proposed deal was "90 per cent-plus there", with only a few issues left, and could "unleash another level" in bilateral ties.

US-India trade deal close

Responding to a question by PTI on when the agreement could be signed, the official said, "I would say stay tuned, which we keep saying, but we are – we are very close – it's like a 90-per cent-plus there and just those final things being worked out, so I hope you're going to see something very soon on that." The official added that the deal would "unleash another level" of bilateral relations.

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The official also said, "And that's really going to just unleash another level of US-India relations, something that hasn't really – we haven't been able to get there in decades when it comes to trade. This has always been the most sticking point in the relationship."

Previously, Commerce and Industry Minister Piyush Goyal also indicated that negotiations were nearing completion. Speaking at an event organised by the Public Affairs Forum of India in New Delhi on Thursday, he said India had finalised nine free trade agreements, including "the US, which is almost done and dusted". He added, "We just have to find the right comparable competitive advantage over our competitor so that we can quickly execute the agreement."

India and the US had in February announced the framework for the first phase of the bilateral trade agreement. However, changes in the US tariff landscape led to further negotiations. Goyal said India's trade agreements would eventually provide preferential access to markets accounting for about 75 per cent of global GDP.

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Rubio visit, Modi trip and Quad in focus

The US official also pointed to a busy calendar in the relationship. Secretary of State Marco Rubio is due to visit India in October, while Prime Minister Narendra Modi is expected to travel to the US for the G20 Summit in Florida in December. "There's just a lot happening in the relationship," the official said.

The official said the foreign ministers of the Quad countries are set to meet for the third time this year, calling it unprecedented and a sign of the importance both sides attach to the grouping.

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IMEC remains a shared priority

On the India-Middle East-Europe Economic Corridor, or IMEC, the official said it remained "absolutely a huge priority" for both countries. The official said the US and India were ready to move ahead, but progress had been slowed by instability in the Middle East.

"I think on the India side and on the US side, we're ready to go," the official said, adding that work was under way to map routes, especially shipping and trucking links. The official said countries in the Middle East would still need to resolve their parts of the project before it could move forward fully.

Broader trade push

Goyal's remarks came ahead of his visit to the US for the G20 Trade Ministerial in Milwaukee, Wisconsin, from September 30 to October 1, where he is also scheduled to meet US Trade Representative Jamieson Greer. Progress in the trade talks is expected to figure in those discussions.

He also cited progress in negotiations with the European Union, Canada, Mexico, the Gulf Cooperation Council and Chile, while saying a deal with Israel could take longer because of the geopolitical situation. On the Regional Comprehensive Economic Partnership, Goyal said India stayed out because joining it would effectively have meant entering into a free trade agreement with China. He noted that India already has trade pacts with ASEAN, Japan and South Korea.