INTERNATIONAL

TradeAgreement – India and US Advance Framework for Bilateral Trade Pact

TradeAgreement – India’s approval of a new framework for a bilateral trade agreement with the United States has opened the door to expanded economic engagement between the two countries. The move marks a significant step in ongoing negotiations aimed at deepening commercial ties and improving market access for businesses on both sides.

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Former US Official Praises India’s Negotiating Approach

In an interview with ANI, former US Assistant Secretary of Commerce Raymond Vickery said India has managed the discussions with a steady and methodical approach. He noted that New Delhi has avoided the uncertainty that has often accompanied trade announcements under US President Donald Trump.

According to Vickery, major trade agreements typically require extended negotiations, often lasting more than a year, to finalize complex technical details before any formal announcement is made. He suggested that India has largely adhered to this conventional process, focusing on substance before public declarations.

He observed that while the timeline surrounding the current framework appears compressed, India continues to emphasize the need to reach a structured and workable agreement in the coming months. That, he said, aligns more closely with established trade negotiation practices than with abrupt policy shifts.

Contrasting Styles in Trade Diplomacy

Vickery drew a distinction between traditional trade diplomacy and what he described as President Trump’s preference for making early announcements, followed by efforts to align policy specifics with those declarations. He argued that such an approach can create pressure to fit complex economic arrangements into predefined political narratives.

In contrast, India has continued to stress the importance of clarity and long-term stability. Vickery remarked that securing an agreement that can withstand political and economic shifts requires detailed groundwork, not just headline commitments.

Russian Oil Issue Adds Strategic Dimension

A key area of discussion has been India’s import of Russian oil. The White House recently withdrew an additional 25 percent tariff on Indian goods after what it described as a commitment related to oil purchases. Vickery said cooperation between Washington and New Delhi on this issue carries broader geopolitical implications, particularly in the context of the conflict in Ukraine.

He cautioned, however, that India’s longstanding ties with Russia cannot be expected to change overnight. The relationship, he noted, spans decades and involves multiple sectors beyond energy. Any adjustment in oil imports would likely follow a gradual and carefully considered process.

Need for Durable and Operational Agreements

Vickery emphasized that lasting trade partnerships depend on agreements that are operationally sound. Announcements made through social media or executive orders, he said, do not substitute for legally and administratively robust frameworks.

He suggested that while interim arrangements can provide momentum, both governments must commit to a structured negotiation process to ensure that any final deal delivers tangible and sustainable benefits. Building trust, he added, requires moving beyond short-term transactions toward a broader strategic partnership.

Interim Framework Signals Broader Ambitions

The United States and India have jointly announced that they reached a framework for an Interim Agreement focused on reciprocal and mutually beneficial trade. The announcement reaffirms their commitment to a more comprehensive Bilateral Trade Agreement, discussions for which were launched earlier this year by President Donald Trump and Prime Minister Narendra Modi.

The interim framework is expected to include expanded market access and measures designed to strengthen supply chains. Officials from both countries have described it as an important milestone in the evolving economic partnership between the two democracies.

While many details remain under negotiation, the framework reflects shared intentions to promote balanced trade and concrete outcomes. Whether the agreement ultimately stands the test of time will depend on continued dialogue, careful drafting, and the political will to translate commitments into action.

 

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