India US trade deal negotiations near signing, Christopher Landau says final hurdle remains

India and the United States were nearing the finish line on a trade deal, but one final obstacle remained, US Deputy Secretary of State Christopher Landau said on Tuesday. Landau said talks had continued for months. Landau said both sides needed closure soon. Landau spoke to reporters at the SelectUSA Investment Summit in Maryland.

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Landau said the remaining work should not delay other priorities between the two countries. Landau said it mattered to finalise the agreement and then shift focus. Landau also said India held growing weight in global affairs. Landau had recently travelled to India, and repeated that a deal was close.

India-US trade deal talks and Landau’s comments

"We are very aware of Indias importance on the world stage. I think it is very important to get a final resolution of that trade deal. We have been talking now for months that we are very close, and I think we are very close. But we have to get over that last hurdle,\" Landau told reporters on the sidelines of the SelectUSA Investment Summit at National Harbour in Maryland near here.

Landau also said a date for completion was still unclear. \"I dont have any huge inside information to provide on when that is coming, but I can just reiterate that I believe that we are very, very close,\" said Landau, who recently visited India. Landau again stressed the need to finish.

\"I think ultimately its important that we reach some closure on that and we finally sign it and move on with the many other issues on our agenda,\" he said. Landau described India as a leading global power. Landau said India had the world’s largest population and strong economic promise.

India-US trade deal framework, dates and market access goals

India and the US announced a framework for a bilateral trade agreement on February 2. The text of the deal was released on February 7. Indian negotiators travelled to the US last month for further talks. India is seeking preferential access to US markets under the proposed agreement.

The two sides have set a goal of reaching USD 500 billion in bilateral trade by 2030. Under the framework, the US agreed to lower tariffs on India to 18 per cent, from 50 per cent. It also removed 25 per cent tariffs linked to purchases of Russian oil.

India-US trade deal tariff changes after US Supreme Court ruling

Under the same plan, the US was to reduce the remaining 25 per cent tariff to 18 per cent. However, the US Supreme Court ruled against Trump’s reciprocal tariffs on February 20. Those tariffs were imposed under the 1977 International Emergency Economic Powers Act IEEPA.

After the Supreme Court order, India is seeking changes to the draft agreement. India wants to recalibrate and redraft parts of the deal. The aim is to protect India’s interests under the new global tariff framework. Landau said both sides still needed to clear the last hurdle.

With inputs from PTI