U.S. Trade Representative Jamieson Greer stated on Thursday that a trade deal with India is not “imminent,” following a phone call between U.S. President Donald Trump and Indian Prime Minister Narendra Modi. Greer’s comments were made while he and Indian Commerce Minister Piyush Goyal were in Milwaukee for a G20 trade ministers meeting.
In a statement to the Indian news agency ANI, Greer said that negotiators have “identified the universe of items that are sticking points.” He described the recent call between President Trump and Prime Minister Modi as “very constructive.”
Greer also held bilateral meetings with Goyal, who is in the U.S. for trade negotiations. Following their discussions, Goyal released a statement on social media indicating the talks focused on the “early conclusion of a mutually beneficial interim agreement under the India-US Bilateral Trade Agreement.”
The differing characterizations of the negotiations were noted by Ronak D. Desai, a visiting fellow at Stanford’s Hoover Institution. In comments to CNBC, Desai said, “Goyal is counting the issues already resolved, and Greer is counting the ones that remain,” adding that the final issues in trade negotiations are often the most difficult.
On Wednesday, Prime Minister Modi described his call with President Trump as “productive.” In a statement, Modi said the two leaders reviewed bilateral trade, defense, and energy, and discussed “ongoing efforts to advance global peace and security.”
Reports have identified several areas of discussion in the trade talks. For the United States, India’s purchases of Russian oil have been a stated point of friction. For India, priorities include protections for its agricultural sector and obtaining preferential tariffs for its exports to the U.S.
The U.S. previously imposed a 25% tariff on certain Indian goods in August of the prior year, later reducing the duties to 18% in February. At the time, President Trump stated that India had agreed to reduce its purchases of Russian oil. The Indian government did not confirm this account and has maintained its purchases are for energy security.
Arpit Chaturvedi, a South Asia advisor at the strategic advisory firm Teneo, told CNBC that the negotiations may be reaching “the limits of trade complementarities between the two countries under current circumstances.” He added that neither side currently appears able to accommodate the other on key issues.
Currently, some Indian exports to the U.S. are subject to a 10% tariff, which followed a U.S. Trade Representative investigation into labor practices in multiple countries. According to the Indian government, a significant portion of its exports to the U.S., including generic pharmaceuticals and smartphones, are not covered by the tariff.
