Can India And US Finally Seal The Deal? US Trade Representatives In Delhi Ahead Of High-Stakes Talks

A delegation from the United States Trade Representative’s office arrived in New Delhi on Monday for four days of negotiations aimed at finalising an interim trade agreement with India.

The talks are being led by chief negotiator Brendan Lynch and come amid growing urgency on both sides to conclude a deal before a new American tariff framework comes into force later this year.

Delegations return to the negotiating table

The latest round follows in-person discussions held in the United States from April 20 to April 23.

Government sources said the American team will continue negotiations on the proposed interim agreement while also advancing discussions on a broader bilateral trade agreement.

According to an official cited earlier by PTI, the talks are expected to focus on market access, non-tariff

measures, customs and trade facilitation, investment promotion and economic security alignment.

The visit comes shortly after US Trade Representative Jamieson Greer said he expected to meet Union Commerce Minister Piyush Goyal soon to help finalise the agreement.

Speaking about the negotiations, Greer said the two countries had already established a framework agreement and that meaningful discussions had taken place.

“I have a team going there next week. I expect to meet my counterpart soon as well. I’d really like to be in a position to finalise our agreement based on the joint framework agreement we agreed to,” he said.

Deal said to be near completion

Last week, US Ambassador Sergio Gor said that India and the United States had completed about 99 per cent of negotiations for an interim agreement.

According to him, only the final one per cent remains unresolved, and he expressed confidence that the deal could be signed within the coming weeks.

Commerce Minister Piyush Goyal has also indicated that an agreement could be reached soon.

Despite the progress, several important issues remain under discussion.

Differences persist on key sectors

India has maintained that sensitive domestic sectors, including agriculture and dairy, must be protected in any trade arrangement.

A senior official told The Indian Express that the government would rather continue with the existing 10 per cent across-the-board tariff than accept terms that interfere with sovereign decisions regarding oil purchases or sensitive agricultural products.

The official suggested that some issues remain unresolved despite the advanced stage of negotiations.

At the same time, a joint statement issued earlier by both governments said India had agreed to eliminate or reduce tariffs on all American industrial goods and a broad range of agricultural and food products.

These include dried distillers’ grains, red sorghum used for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine, spirits and additional products. It remains unclear what additional concessions the Trump administration is seeking beyond those commitments.

Pressure builds ahead of new tariff rules

Government sources said both countries are eager to conclude an agreement because a new American tariff structure is expected to replace the reciprocal tariffs announced by President Donald Trump.

Those tariffs were later declared illegal by the Supreme Court.

According to sources, the new tariff rates under Section 301 are scheduled to take effect on July 24, creating pressure to complete negotiations before then.

Trade ties recovering

India and the United States are also attempting to rebuild a relationship that experienced significant strain during Trump’s presidency.

According to the report, Trump imposed 50 per cent tariffs on India last year, criticised India’s purchase of Russian oil, sided with Pakistan on Kashmir and made comments during Operation Sindoor that affected bilateral ties.

India and the United States had been close to concluding a trade deal in July last year before negotiations stalled after Washington increased its demands.