India's 'Red Lines' Must Be Respected in US Trade Deal, Says EAM Jaishankar
External Affairs Minister S. Jaishankar stated that any trade deal with the United States must respect India's "red lines." Acknowledging ongoing issues and strains over US tariff policies, he noted that the inability to finalize a trade agreement has led to levies on India. He specifically mentioned tariffs related to India sourcing energy from Russia as "very unfair." Jaishankar emphasized that while an understanding with the world's largest market is necessary, India's non-negotiable bottom lines must be honored.
Unpacked:
India's 'red lines' refer to its non-negotiable interests, such as protecting domestic industries, maintaining energy security, and ensuring that trade terms do not compromise its sovereignty or economic priorities. These lines are set to ensure that any agreement does not undermine India's core interests or developmental goals.
The US imposed higher tariffs on Indian goods, including an extra 25% duty on imports related to India's purchase of Russian crude oil, viewing these imports as problematic due to sanctions on Russia. India considers these tariffs unfair and argues they penalize its efforts to maintain energy security.
The US is India's largest trading partner, with bilateral trade valued at $191 billion. Both countries aim to double this to $500 billion by 2030 through a mutually beneficial trade agreement that respects each country's priorities.
Talks have resumed, with both sides exchanging views and aiming for an early conclusion of a draft trade pact. Constructive meetings have occurred, but final agreement depends on resolving key differences and respecting India's bottom lines.