US Nears Trade Deal with India, Says Secretary of State Marco Rubio

The United States is close to finalising a trade agreement with India, US Secretary of State Marco Rubio has said, signalling progress in negotiations between the two countries.

“We are trying to finalise a trade deal with India right now. We are very close to that,” Rubio told reporters on Monday in Samarkand, Uzbekistan.

Rubio is scheduled to meet foreign ministers from Central Asian countries in Samarkand ahead of a three-day visit to India beginning Tuesday.

During his visit, the US secretary of state is expected to travel first to Mumbai, India’s commercial hub, before heading to Jamnagar in the western state of Gujarat to visit what is described as the world’s largest single-site oil refinery complex.

Russian energy sanctions also in focus
Rubio also addressed Washington’s decision to grant exemptions related to sanctions on Russian oil and gas, saying such decisions take into account their potential impact on global energy supplies and prices.

“We have to manage all of these issues,” Rubio said, reiterating that Washington was close to finalising a trade agreement with India.

He added that President Donald Trump considers various factors when making decisions involving exemptions in the interests of national security.

According to Rubio, every country faces its own set of challenges that policymakers must consider. Geographic realities can make it difficult for some countries to secure energy from alternative sources, he said.

While acknowledging that such circumstances should not serve as an excuse, Rubio stressed that they must be weighed carefully when formulating foreign policy.

In February this year, the United States and India announced that they had reached an understanding on the terms of an interim framework agreement aimed at resolving bilateral trade disputes.

Last week, Indian Commerce Minister Piyush Goyal said the first phase of negotiations on the trade agreement had concluded and that the legal text was being drafted.

Speaking at an event in New Delhi, Goyal said India hoped to finalise and implement the agreement quickly, provided it could secure comparable or competitive advantages relative to rival countries.

Trade relations between Washington and New Delhi came under strain last year after the Trump administration imposed tariffs of up to 50 per cent on Indian goods. India's continued purchases of Russian oil amid the Russia-Ukraine war were among the factors behind the tariff measures.

Despite the tensions, trade remains a crucial component of the strategic partnership between the two countries.

Bilateral trade between the United States and India totalled approximately $149.4 billion last year, underscoring the economic significance of reaching an agreement.