New Delhi [India], March 26 (ANI): External Affairs Minister S. Jaishankar stated that India and the US had a “very open discussion” on trade, which resulted in Prime Minister Narendra Modi and US President Donald Trump agreeing to conclude a bilateral trade agreement by fall this year.
Speaking in conversation with Kyung-wha Kang of Asia Society in Delhi on Wednesday, Jaishankar mentioned that there has been a “very active and intense trade discussion” between India and the US and recalled the visit of Union Minister of Commerce and Industry Piyush Goyal to the US in February.
Responding to a question about trade agreements between India and the US, Jaishankar said, “When we went to Washington in February when Prime Minister went and the discussions that he had with President Trump, I think overall our assessment was that we saw many changes which suited us or which in some ways formed a convergence on which we could build upon.”
He cited defence cooperation as one of the key areas, stating, “We saw a president who was much more open and much more active in terms of building a security defence partnership and much more forthcoming about American technology possibilities.”
Notably, India and the US are preparing to negotiate a landmark Bilateral Trade Agreement (BTA) that could potentially boost trade between the two nations amid President Trump’s plans to impose reciprocal tariffs on US trading partners, including India.
Jaishankar added, “Our own experience in his first term was that he personally took an interest in ensuring that some of the platforms which we had an interest in, which were meandering through American bureaucracy, were expedited. This time, we suddenly heard a recognition that there has to be a better way of engaging partners who respect and recognise American technology and want to acquire it.”
He further stated, “We certainly expect a more substantial, higher quality defence relationship as a result.”
President Trump had previously criticised India’s high import duties, particularly on automobiles, targeting India’s tariffs that exceed 100%. He announced that reciprocal tax measures would come into effect on April 2, expressing dissatisfaction with decades of trade imbalances.
On the energy front, Jaishankar expressed India’s interest in increasing LNG imports from the US. He emphasised the need for a stable, predictable energy environment crucial for India’s long-term growth. “We found from the energy perspective a very positive administration,” he said.
He also highlighted the importance of the technology sector, stating, “The success of BigTech is essential to make America great again.” He noted that big tech companies recognise the importance of talent mobility, partnerships, and transparent, trusted supply chains.
Regarding trade, Jaishankar confirmed, “We had a very open discussion and the result was that the Prime Minister and the President agreed to conclude not a free trade agreement, but a bilateral trade agreement by fall this year. There is a very active and intense trade discussion going on at this point of time.”
On India’s decision not to join the Regional Comprehensive Economic Partnership (RCEP), Jaishankar explained, “We did not sign RCEP because we continuously sought protections and safeguards due to apprehensions about a surge of imports spurred by non-market and subsidy support. Our concerns were not taken seriously.”
He added, “RCEP is a supply chain architecture system where rules of origin have very limited meaning. We are already struggling with adverse trade balances, and there are concerns about the hollowing out of our industrial capacity. All these factors influenced our decision not to join.”(ANI)
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