A team from India is currently in the United States to discuss tariff-related issues, but Commerce Secretary Rajesh Agrawal said it is not “the right time” for the next official round of negotiations on a Bilateral Trade Agreement (BTA) due to the ongoing U.S. government shutdown.
Speaking during a press briefing on October 15, Agrawal, who is India’s chief negotiator for the BTA, said that both sides are actively exploring ways to resolve the current trade tensions. “Our negotiating team is in the U.S. and is trying to see if we can have a win-win solution between the two sides that can address some of the tariff issues,” he said.
The U.S. government is facing a shutdown after failing to pass funding legislation for the current financial year, reducing its manpower and limiting the scope for formal negotiations. “Regarding the formal rounds of negotiations, the US is currently in shutdown and their manpower strength is down, so this is not the right time to have a full-fledged trade negotiation,” Agrawal added.
He also emphasized India’s willingness to increase energy imports from the U.S., provided the terms are favorable. “As a country, we will be very happy to buy more energy from the U.S., subject to it being available at the right price. India would like to diversify its portfolio as far as energy imports are concerned,” Agrawal said.
India imposed 50% tariffs on some U.S. imports in September, partly as a penalty for U.S. restrictions related to India’s crude oil purchases from Russia. Agrawal described energy diversification as “the best strategy” for a large oil-importing country like India.
On other trade fronts, he noted that free trade agreement negotiations with the European Union are progressing well. “We are in the last leg of negotiations. The last was the most arduous leg because the toughest things are decided at the end. We saw real progress in the last round and remain hopeful that our teams will resolve the remaining differences,” he said.
Meanwhile, some members of the Indian negotiating team have stayed back in Brussels to advance discussions on rules of origin, an area requiring detailed work to ensure substantial progress.
