Monday, June 23, 2025

What are the primary obstacles preventing a comprehensive India-U.S. trade agreement?

 What are the primary obstacles preventing a comprehensive India-U.S. trade agreement?

 

The primary obstacles preventing a comprehensive India-U.S. trade agreement are largely centered on the agriculture and dairy sectors.

Key points highlighting these challenges include:

•Elusive Agreement on Key Sectors A potential trade deal remains challenging because an agreement between India and the U.S. on agriculture and dairy remains elusive.

•Sensitivity of Sectors These sectors, particularly dairy, are considered "sensitive". India aims to be "very careful" in negotiations concerning them, prioritizing their protection over rushing to meet deadlines.

• Ongoing Differences: Even in the context of the July 9 deadline for the reimposition of U.S. reciprocal tariffs, these sectors present challenges due to existing differences. India is not "desperate" to conclude a deal by this deadline, indicating that protecting these sensitive sectors is a higher priority than simply meeting the date. The government is still carefully considering what to include and exclude, even for a "mini deal".

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