India-US trade deal is close to finish line: US Deputy Secretary Landau

India-US trade deal is close to finish line: US Deputy Secretary Landau

• US and India near finalizing a major bilateral trade deal
• US and India to reduce tariffs on each other's goods
• India to purchase $500B in US energy, goods over 5 years

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United States Deputy Secretary of State Christopher Landau on March 5 said "we are very excited about the (India-US) trade deal that is almost at the finish line now".

In a curtain-raiser session titled "Power, Purpose, & Partnerships: American Foreign Policy in a New Era," of the Raisina Dialogues, Landau addressed the Observer Research Foundation (ORF), stating, "US and India share strong security interests, from counter-terrorism to freedom of navigation. Believe the next few years can lay the foundation for decades of strong US-India co-operation."

"Just as President Trump wants to make America great again, he would expect the Prime Minister of India or other leaders to want to make their countries great again," the Deputy Secretary of State remarked at the session.

India should look at the United States as a strong alternate energy source, he said.

"US is an energy-rich country and wants to deepen co-operation with India. We are ready to work with India to Ensure its energy needs are met in the short and long-term. Energy is a key area where the US and India can expand co-operation. US is well-positioned to support India as it diversifies its energy sources," Landau added.

On the economic front, Landau provided a positive update on ongoing negotiations, expressing optimism regarding bilateral commerce. "We are very excited about the trade deal that is almost at the finish line now and could unlock huge economic potential."

In February, the two countries announced that they have finalised the contours for the first phase of the bilateral trade agreement.

Under the pact, the US announced that it will bring down the reciprocal tariffs on Indian goods to 18 per cent from 25 per cent. The US has also removed the 25 per cent punitive tariffs on India, which were imposed for purchasing Russian crude oil.

Both sides also agreed to reduce import duties on a number of goods. India agreed to eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products, including tree nuts, fresh and processed fruit, soybean oil, wine and spirits.

As per the pact, India has stated that it intends to purchase $500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next five years.

To finalise the legal text of the deal, chief negotiators of both countries were scheduled to meet this week in Washington, but the meeting was put on hold after the US Supreme Court's verdict on Trump tariffs.