Indian Negotiators will Return to Washington to Discuss BTA

The Indian negotiators are all set to return to Washington this week to inch closer towards a trade deal, soon after a thaw in trade talks between the two nations. The newly appointed US Ambassador-designate Sergio Gaur met Prime Minister Narendra Modi, External Affairs Minister S. Jaishankar, as well as Commerce Secretary Rajesh Agarwal over the weekend. Even though there is less clarity on the agenda of the upcoming meeting with the United States Trade Representative (USTR), there are speculations that the formal round of negotiations will step up energy imports from the US to resolve Washington’s concerns over New Delhi’s import of Russian oil.

Officials from both countries have indicated that the resolution of the Russian oil issue is a precursor to negotiations for a Bilateral Trade Agreement (BTA) between the US and India. This was the same reason that led to tensions between the two countries after a phone call between US President Donald Trump and Prime Minister Modi last Thursday. In the call, PM Modi congratulated President Trump on the success of his historic Gaza peace plan and added that he had also reviewed the good progress achieved in trade negotiations.

This was the second conversation between the two leaders since September 16, when the Prime Minister received a call from the US President on the eve of his 75th birthday. National media has reported in the past that the two sides have been exploring the possibility of a meeting between the two leaders on the sidelines of the ASEAN East Asia Leaders’ Summit in Kuala Lumpur, Malaysia, from October 26–28.

Tensions between the two countries rose when US–China talks faltered after China announced fresh curbs on critical mineral exports. Trump threatened the country with 100 percent tariffs. However, he also said, “Don’t worry about China. It will be fine! Highly respected President Xi just had a bad moment. He doesn’t want a depression for his country, and neither do I. The US wants to help China, not hurt it.”

Replying to this, the Chinese embassy said, “China’s position on the trade war is consistent. We do not want it, but we are not afraid of it… If the US insists on going the wrong way, China will surely take resolute measures to protect its legitimate rights and interests.” This can be called one of the most straightforward responses from the Chinese side.