India cautious on trade deals, says US pact “very close”
India will not accept limits on its trade options or rush into signing agreements, Commerce Minister Piyush Goyal said on Friday, even as a senior government official said a bilateral trade agreement with Washington was “very close”.
“India will not sign any trade deal in a hurry,” Goyal said while addressing the Berlin Global Dialogue, referring to the concerns of the European Union and the US over India’s continued purchases of Russian oil.
Along with ongoing EU free trade pact negotiations, India is also in trade talks with the United States, which has imposed tariffs of 50% on Indian exports.
US President Donald Trump said this week that he spoke with Indian Prime Minister Narendra Modi primarily about trade, and that Modi had assured him that India would limit its oil purchases from Russia.
Goyal said New Delhi would take a measured approach.
An official familiar with ongoing trade talks with the US told reporters in New Delhi that the two countries were sorting out the language of their agreement.
“We are very close in terms of an agreement,” the official said, adding that the two countries “are in agreement on most issues.”
New Delhi has rejected US demands to allow market access for American grain and dairy products, citing the need to protect the livelihoods of small farmers. But India may consider allowing imports of corn and soybeans, trade and industry sources said.
After the United States slapped sanctions on top oil producer Russia on Wednesday, Indian refiners – major buyers of cheap Russian oil – said they would sharply reduce imports, potentially clearing a major hurdle in a US-India trade deal.
Exports of goods to America fell to $5.43 billion from $6.87 billion in August, as tariffs hit shipments of goods such as textiles, shrimp, gems and jewelry, according to data released by the Commerce Ministry.
The EU, Britain and the United States are pressing New Delhi to reduce imports of discounted Russian crude, which Western countries say is helping fund Moscow’s war effort in Ukraine.
India has long argued that its energy purchases are critical to ensuring affordable supplies and energy security, but Indian refiners are now poised to sharply limit Russian oil imports to comply with new US sanctions on two major Russian producers.
Source: Reuters
