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A team of officials led by Commerce Minister Piyush Goyal is expected to visit Washington next week to resume negotiations for a trade deal, two officials aware of the development told The Indian Express. This comes after the US team, led by Assistant US Trade Representative (USTR) for South and Central Asia, Brendan Lynch, visited New Delhi earlier this week to meet the Indian counterpart.
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The talks in Washington will mark the resumption of the trade negotiations that got stalled as US President Donald Trump, on August 7, ramped up pressure on India and doubled tariffs on India to 50 per cent over India’s purchase of Russian oil. Later, the US negotiators, expected to be in India on August 25, postponed the visit.
This comes as Indian exporters have begun facing the pinch of the steep US tariffs with cancelled orders from the US, especially in labour-intensive sectors such as textiles, footwear, and fisheries. On Thursday, Chief Economic Adviser V. Anantha Nageswaran had said that additional US tariffs of 25 per cent on India levied over the purchase of Russian oil won’t continue beyond November 30.
Signs of easing trade tensions began emerging as Trump earlier this month said India and America are “continuing negotiations to address the trade barriers”, and that he was “certain” there would be “no difficulty” in the talks being successful. Responding hours later, Prime Minister Narendra Modi said both countries are “natural partners” and will “work together to secure a brighter, more prosperous future”.
However, the US asked G7 countries to ramp up pressure on countries buying Russian oil, to end the war in Ukraine, as per a joint statement released by the US Department of the Treasury. The statement said the US has received “commitments” from G7 countries to increase sanctions pressure on Russian oil buyers. China and India are the top buyers of Russian oil.
India has maintained that it will continue to buy Russian oil. Finance Minister Nirmala Sitharaman earlier this month said that economic and commercial considerations drive India’s oil purchases. India is the world’s third-largest consumer of crude and depends on imports to meet around 88 per cent of its requirement.
Prime Minister Narendra Modi, during his Independence Day speech, said India will not compromise on the well-being of Indian farmers, fisherfolk and cattle keepers. “The well-being of Indian farmers, fisherfolk and cattle keepers is our foremost priority. Modi is standing like a wall against any adverse policy that could impact Indian farmers, fisherfolk and cattle keepers,” the Prime Minister said during his Independence Day speech.
© The Indian Express Pvt Ltd
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