India-US trade agreement talks described as very far advanced

India and the United States have reached “more or less an understanding” on a trade agreement, External Affairs Minister S. Jaishankar said, while noting that the timing of its conclusion remains linked to the ongoing US Section 301 process.

Speaking at an Asia Society interaction in New York, Jaishankar said expectations that the negotiations would move rapidly had been tested by the complexity of the issues involved.

He said the two sides had reached a situation where the proposed trade agreement was very far advanced, but the Section 301 process was still unfolding.

Section 301 of the US Trade Act allows the United States to investigate trade practices and take action where it considers them harmful to US commercial interests. The process has become one of the factors being considered as India and the US work towards concluding their trade negotiations.

Jaishankar also pointed to differences in the economic structures of the two countries. He noted that India’s economy includes a large number of small farmers, producers and factories, making some aspects of trade negotiations more detailed and complex.

India and the US have been negotiating a bilateral trade agreement covering areas including goods, services and market access. The negotiations have continued amid differences over tariffs and other trade-related issues.

Jaishankar said a trade agreement, if concluded, could contribute to better bilateral relations. At the same time, he said India needed to remain realistic about the issues that still have to be resolved.

The minister also discussed the broader India-US relationship and the role of economic and people-to-people ties. He said diplomacy increasingly involves public opinion and domestic political considerations in addition to traditional government-to-government engagement.

The latest comments provide an update on the status of the trade negotiations but do not set a specific date for the agreement’s conclusion.

Commerce and Industry Minister Piyush Goyal is scheduled to visit the United States from September 29 to October 5 for discussions related to the trade agreement and other economic engagements.