Synopsis
US Treasury Secretary Scott Bessent predicts that India will be the first nation to finalize a trade agreement with Washington, attributing the ease of negotiations to simpler issues compared to other nations. Significant progress has already been made in discussions.Key Takeaways
- US Treasury Secretary Bessent foresees India leading in trade agreements with the US.
- Negotiations are reportedly close to a deal, focusing on high tariffs.
- India has fewer trade barriers, facilitating the agreement.
- Vice President Vance affirmed substantial progress in trade discussions.
- India's trade surplus with the US was $45.7 billion last year.
New York, April 24 (NationPress) US Treasury Secretary Scott Bessent anticipates that India will be the first to finalize a trade agreement with Washington, citing that the issues involved are more straightforward, thus making a pact "significantly simpler."
He remarked on Wednesday that discussions surrounding trade were "very close" to achieving a resolution.
According to him, India has "fewer non-tariff trade barriers, obviously, no currency manipulation, and minimal government subsidies, making it much easier to reach an agreement with India," he shared with journalists at a closed-door meeting in Washington during the Spring meetings of the International Monetary Fund and the World Bank.
He noted that the primary trade concerns with India revolve around high tariffs, as reported by meeting attendees.
US Vice President J.D. Vance, currently in India, discussed trade matters with Prime Minister Narendra Modi earlier this week and indicated that significant advancements had been achieved.
While speaking in Jaipur on Tuesday, Vance expressed enthusiasm, stating, "We are particularly delighted to officially announce that America and India have finalized the terms of reference for the trade negotiations."
"This is an essential milestone toward fulfilling the vision of President (Donald) Trump and Prime Minister Modi, as it lays out a roadmap for a final agreement between our nations. I genuinely believe that there is a lot that America and India can achieve together," he added.
The two leaders confirmed that they had devised a strategy for the trade discussions to move forward and help India avoid the 26 percent tariff rate that Trump has indicated would be implemented in July without a deal.
The office of the US Vice President characterized the discussions as "an opportunity to forge a new and modern trade agreement aimed at fostering job creation and improving the well-being of citizens in both nations."
India has initiated actions to lower tariffs on Harley-Davidson motorcycles and bourbon whiskey, among other items frequently mentioned by Trump.
Furthermore, New Delhi has expressed its intention to augment energy and defense acquisitions from the US.
Finance Minister Nirmala Sitharaman has also highlighted the significance of a trade deal with the US, noting that India was among the first to commence trade negotiations with Washington.
"The United States of America is India's largest and most crucial trading partner, a fact that is well recognized by the current Indian government," she stated on Monday at Stanford University's Hoover Institute, a conservative think tank.
During a gathering with the Indian diaspora, she projected that the initial phase of the trade agreement would be concluded by autumn.
"The US is our largest trading partner with whom we need to establish an agreement," she emphasized.
The bilateral trade volume between the two nations reached $129 billion last year, with India enjoying a trade surplus of $45.7 billion.
