‘Working to strengthen ties with US through bilateral trade pact’
New Delhi: The government reiterated its commitment to enhance trade relations with the United States amid recent remarks by President Donald Trump regarding potential retaliatory measures. The foreign ministry announced on Friday that as global economic and geopolitical dynamics continue to evolve, both countries are working towards finalising a multi-sector bilateral trade agreement aimed at deepening economic ties.
US President Trump has recently employed various strategies to retaliate against perceived threats or actions by other countries. One of his notable methods is the imposition of tariffs. For instance, he threatened to impose significant tariffs on Canadian and Mexican products due to concerns over drug trafficking and migration. Additionally, he ordered 25 per cent tariffs on all goods from Colombia, which would increase to 50 per cent in one week, in response to the rejection of deportation flights. Trump has also implemented visa restrictions, such as ordering a travel ban and immediate visa revocations for Colombian government officials, allies, and supporters. He has also imposed enhanced customs inspections for all Colombians. Furthermore, Trump has withdrawn the United States from international agreements, such as the OECD’s global minimum tax deal, which can lead to potential retaliatory measures from US allies. These actions are aimed at protecting US economic interests and addressing national security concerns.
During Prime Minister Narendra Modi’s visit to the United States in the last month, both sides announced plans to negotiate a trade agreement aimed at fostering cooperation across multiple sectors. The proposed pact focuses on enhancing two-way trade in goods and services, expanding market access, reducing tariff and non-tariff barriers, and further integrating supply chains between the two economies. The Indian government has also emphasised that this agreement is crucial in strengthening the economic partnership and ensuring long-term stability in trade relations.
To advance these discussions, India’s Commerce Minister Piyush Goyal recently visited the United States, where he engaged in talks with his American counterparts. While specific details of the discussions remain undisclosed, officials have indicated that progress was made in aligning mutual interests and identifying areas of collaboration. The Indian government remains optimistic that both sides will continue working towards a balanced and mutually beneficial agreement that addresses key concerns and unlocks new opportunities for trade and investment.
Meanwhile, on the issue of extradition, India is in active discussions with the US government regarding the return of an individual facing legal proceedings. The extradition process, which was addressed in the joint statement issued during Prime Minister Modi’s US visit, remains a priority for the Indian authorities. While legal procedures in the United States need to be completed, India is working closely with the relevant agencies to ensure a smooth transition. The government has expressed confidence that the process will move forward in accordance with the legal frameworks of both nations.
The broader India-US relationship continues to be shaped by both economic and strategic imperatives. As two of the world’s largest democracies and economic powerhouses, the two nations share deep-rooted ties that extend beyond trade and security. The ongoing negotiations for a comprehensive trade agreement, along with cooperation on other critical issues, highlight the evolving nature of their partnership.
