Jaishankar and Rubio emphasise early conclusion of India-US trade agreement

Amid global uncertainty triggered by US President Donald Trump’s ‘reciprocal tariffs’, External Affairs Minister S Jaishankar spoke with his US counterpart Marco Rubio. They agreed on the importance of concluding the ongoing Bilateral Trade Agreement (BTA) discussions between the two countries. Jaishankar posted on X about the conversation, highlighting their discussion on the Indo-Pacific, Indian sub-continent, Europe, Middle East/West Asia, and the Caribbean.

India and the US are working on a BTA, with trade negotiators having a four-day round of talks in New Delhi from March 26-29. The agreement aims to deepen supply chain integration and cover various issues of mutual interest. The US imposed tariffs on April 2, escalating tensions with allies and adversaries, while plummeting global markets.

The European Union has offered to negotiate with the US and proposed zero-for-zero tariffs. European Commission President Ursula von der Leyen stated that Europe is ready for a good deal but also prepared to respond with countermeasures to defend its interests. India and the EU announced talks on a free trade agreement in February.

For India, there is a fear of trade-decline in electronics, gems, jewellery and fisheries. On the brighter-side, it presents an opportunity for New Delhi to gain wider access to US markets as an alternative to China using the tariff-differential.

Prime Minister Narendra Modi had met Donald Trump in Washington DC on February 13 and announced ‘Mission 500’ – aiming to more than double the bilateral trade to USD 500 billion by 2030. The Office of the US Trade Representative (USTR) pegs the 2024 bilateral trade at USD 129.2 billion.