Much-delayed India-US trade negotiations likely in final leg: What lies ahead?, Pg15.

Key Highlights:

• High-level Indian delegation led by Commerce Minister Piyush Goyal is in Washington to resume trade deal negotiations.
• Negotiations stalled after the US doubled tariffs on India’s purchase of Russian crude on August 7.
• India expects reciprocal and punitive secondary tariffs to be removed in a single step.
• The Trump administration’s H-1B visa decision is seen as a possible negotiating tactic.
• Chief Economic Adviser V Anantha Nageswaran indicated additional US tariffs on India levied over the purchase of Russian oil “won’t continue beyond November 30”.

Detailed Insights:

• The draft deal was previously cleared at the official level but derailed after the White House sought more concessions.
• India may offer additional concessions, including defence purchase commitments and nuclear collaboration plans, to further the strategic bilateral relationship.
• New Delhi has consistently asserted that it will not breach its red lines, even if it means forgoing a trade deal.
• The US has asked G7 countries to increase pressure on countries buying Russian oil to end the war in Ukraine.
• India maintains it will continue to buy Russian oil, citing economic and commercial considerations.

Key Concepts Involved:

• Reciprocal Tariffs: Taxes imposed on imports from a country that has imposed tariffs on your exports.
• H-1B Visa: A non-immigrant visa that allows US employers to temporarily employ foreign workers in specialty occupations.
• Trade Negotiations: Discussions between countries to reduce or eliminate barriers to trade, such as tariffs and quotas.