Given the ongoing financial concerns concerning India’s acquisition of Russian oil, the United States is likely to continue its tariff measures on Indian commodities, according to a person with knowledge of the situation. Amid rising international tensions, the cessation of monetary resources to the Russian capital is a critical point on the American agenda.
After accompanying India’s Minister of Commerce & Industry, Piyush Goyal, to America for trade talks, the nation’s chief advocate for the US Bilateral Trade Agreement (BTA), Rajesh Agarwal, and his team have returned to India. However, the precise timetable for the next step of negotiations, the sixth round, remains undetermined.
The individual privy to the scenarios stated, ‘The current primary point of contention for the US in the ongoing bilateral discussions is India’s procurement of oil from Russia. It is highly significant to halt funding that would support Russia’s engagement in Ukraine. Until this matter is fully resolved, tariffs on Indian goods by the US are likely to persist.’
Despite potential roadblocks, both parties to the negotiation express a careful optimism towards future outcomes. As of the present moment, however, neither the Indian nor the American side has issued any official statement concerning the date or details of the impending sixth round of discussions.
Notably, the previous trade discourse between India and America occurred from July 14th to 17th. In response to India’s buying of Russian oil, the US imposed a punitive reciprocal tariff of 25 percent on India on August 7, with a further 25 percent levied on August 27. Consequently, dealing with this issue effectively has been one of the main hurdles in the smooth resumption of talks between the two countries.
In addition to the particular issue of the purchase of Russian oil, other obstacles hindering the progress of the trade negotiations include India’s rigid positions in sectors such as agriculture and dairy. These topics need to be effectively addressed for deliberations to fully recommence and for the bilateral trade agreement discussions to get back on track.
India’s procurement of Russian oil has escalated dramatically since the onset of the Ukraine war in 2022. Whereas India’s total crude oil imports from Russia were less than 1 percent prior to the conflict, they have surged to over 35 percent at present, owing to the deep discounts being offered.
The Indian capital city, New Delhi, has defended its stance on these oil purchases. The argument rests on its position that these purchases did not breach any legal norms. Moreover, it pointed out that US authorities had previously urged this step, with a view to stabilizing international prices amid the global political climate.
New Delhi further justifies its actions by underscoring that it is not the only entity involved in commercial relations with Moscow. It emphasized that trading activities were also taking place between the US and the European Union and Moscow, drawing a parallel with its own circumstances.
In an effort to mollify the situation and potentially diminish the strain on its bilateral relations with the US, New Delhi might consider increasing its petrochemical purchases from America. This step could pave the way for easing the diplomatic tensions concerning the purchase of Russian oil and mitigating the tariff barriers.
India is one of the world’s largest energy consumers, drawing from various global suppliers, including the US. The Minister of Commerce & Industry, Piyush Goyal, recently put forth India’s perspective on the matter, stating that the country looks forward to increasing its energy trade with the US in the coming years.
In terms of the larger picture, these discussions and successive actions hold potential implications not only for the US and India but also for the global commodities market, and more specifically, for the international energy sector.
The complexity of these scenarios reflects the intertwined nature of global politics and economics. The issues at hand do not just revolve around India-US bilateral trade, but also extend to considerations of international energy security and geopolitical stability.
Moreover, while punitive tariffs and trade disagreements provide a substantial test for these two economies, they also present an opportunity to rethink strategic approaches. Both countries will need to balance their domestic needs with their international commitments and relationships.
The resolution of these matters will importantly signal the direction of future trade relations between the two nations. Furthermore, it underlines the criticality of negotiation and consensus in international diplomacy and trade agreements.
In conclusion, these ongoing negotiations underscore the challenging landscape of international trade in today’s world. Amid geopolitical shifts and economic complexities, it remains to be seen how the US and India will steer their bilateral relations to align their respective domestic and international priorities.
The post US Keeps Tariffs on India Over Russian Oil Acquisition appeared first on Real News Now.
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