India-US trade deal breakthrough unlikely till Trump drops 25% oil-linked tariffs: GTRI

Negotiations will remain slow unless Washington signals genuine flexibility

Any progress on the India-US trade deal front largely hinges on Washington rolling back the Russian oil-linked additional 25 per cent duty on India, and no breakthrough is likely without it, India-based trade-focused think tank Global Trade Research Initiative (GTRI) has argued as both countries started talks on Tuesday.

"Negotiations will remain slow unless Washington signals genuine flexibility," the GTRI report argued.

It believes that there is no quick fix and India must prepare for a long haul.

India and the United States are back at the negotiating table today in New Delhi to revive trade talks after a hiatus.

The US delegation, led by Assistant USTR for South and Central Asia Brendan Lynch, is meeting Indian counterparts for the first time since President Donald Trump imposed an additional 25 per cent tariff on Indian goods from August 27 for what it said was "purchasing Russian oil" -- on top of the 25 per cent reciprocal tariffs already in place since August 7.

According to GTRI, the US looks desperate to close a trade deal with India, even as its officials almost daily use "disparaging language" against New Delhi from public platforms. 

GTRI suggested that India must hold firm on agriculture and dairy, which it views not as trade issues but livelihood concerns for several hundred million farmers.