Prime Minister Narendra Modi and US President Donald Trump on Thursday reviewed the “good progress” achieved in the negotiations for their trade agreement and agreed to remain in touch in the coming weeks.
In a telephonic conversation, Modi, describing Trump as a friend, also congratulated him on the success of the “historic Gaza peace plan”. “Spoke to my friend, President Trump and congratulated him on the success of the historic Gaza peace plan. Also reviewed the good progress achieved in trade negotiations. Agreed to stay in touch over the coming weeks,” Modi said in a post on X.
Diplomatic double
The peace plan was pushed strongly by Trump and both Israel and Hamas have signed on the first phase of it. The plan will lead to ceasefire on the two-year old conflict, release of hostages and prisoners.
India and the US have been negotiating on the first phase of the bilateral trade agreement (BTA) since March, which is scheduled to conclude in November. Though the formal rounds of negotiations have been suspended since August, both sides remain in touch at various levels.
Commerce and Industry Minister Piyush Goyal had said recently that there is still a possibility of having an agreement before the deadline.
The US and India had last direct contact on the trade negotiations in late September when Goyal and Chief Negotiator Rajesh Agarwal with their team of officials visited the US.
During the visit from September 22 to September 24, Goyal met US Trade Representative Jamieson Greer and the US Ambassador designate to India Sergio Gor.
Sticking Points
At the meetings, India and US discussed the possible contours of their trade deal for an early conclusion. Talks were held on various aspects of the deal and views were exchanged on the different possibilities.
In its talks with the US, India is insisting on the removal of 25% additional duties imposed on India for buying Russian oil and bringing down the reciprocal tariffs from the current levels of 25%. As in other trade deals where negotiations are on Most Favoured Nation (MFN) tariffs, with the US the talks are mostly on the additional tariffs imposed by US President Donald Trump through executive orders.