India-US trade pact could improve bilateral ties: Jaishankar

NEW DELHI: External Affairs Minister S Jaishankar said a trade agreement between India and the US, if concluded, could help improve bilateral ties, while acknowledging that negotiations have taken longer than expected due to their complexity.

Speaking at an Asia Society event in New York, Jaishankar said the two sides had reached a broad understanding on the pact, but differences in their economic structures, particularly India’s large base of small and agricultural producers, required detailed negotiations.

He said the prolonged talks had created “bumps” in bilateral relations, but completing the agreement could help put ties on a better footing. He also noted that ongoing US tariff reviews, including the Section 301 process, remained a factor in determining when the pact could be finalised.

Jaishankar further said developments within the US, particularly the growing political sensitivity around mobility, had affected bilateral ties.

Commerce Minister Piyush Goyal had recently said the trade pact was “done and dusted” and would be executed once India secured a competitive advantage for its exporters. Goyal is scheduled to visit the US from September 29 to October 5 for G20 meetings and talks with US Trade Representative Jamieson Greer.