US Ambassador Sergio Gor affirmed that the India-US trade agreement is on the cusp of finalization, stating it is "very close" and "will happen." His remarks came during an interview where he clarified that a US Supreme Court ruling necessitated a reworking of certain aspects of the deal.
Trade Pact Nears Completion Amid Legal Drafting
Gor's statement aligns with recent comments from India's Commerce Minister Piyush Goyal, who indicated that the initial phase of the agreement is currently undergoing legal drafting. External Affairs Minister S Jaishankar also echoed optimism this week, suggesting negotiations are nearing a "landing spot."
The Ambassador acknowledged the complexity of the deal, noting that while negotiations commenced in early 2025, a court verdict, reportedly referencing a US Supreme Court judgment on tariffs imposed under emergency powers, forced a revision. This added time to a process that, by comparison to India's lengthy negotiations with the European Union, is still relatively swift, according to Gor.
Boosting Bilateral Trade and Investment
The proposed pact aims to resolve tariff disputes, eliminate non-tariff barriers, and enhance market access for goods and services between the two nations. India is particularly keen on securing more favorable tariffs in the US market to boost its competitive edge.
Bilateral trade between India and the US has seen significant growth, exceeding $250 billion, a more than tenfold increase over the past two decades. Leaders from both countries, including former US President Trump and Prime Minister Narendra Modi, have set an ambitious goal of reaching $500 billion in bilateral trade within the next three years. Ambassador Gor highlighted key sectors like pharmaceuticals and IT as major drivers of this economic exchange, with substantial investments flowing in both directions.
The US embassy in India has also distinguished itself, outperforming other US missions globally by attracting over $20 billion in new US investments.
Addressing Past Strains
While the trade relationship is largely positive, it has navigated periods of tension. Recent years saw the US imposing punitive tariffs on India, alongside issues such as increased H-1B visa fees and restrictions on a critical Green Card processing program, which impacted Indian IT firms. Despite these challenges, both nations remain committed to strengthening their economic ties.