‘Very, very difficult’ to give or take more as India-US trade talks hit ‘plateau’: Sitharaman

India-US trade talks have reached a “plateau” where making further concessions could prove “very, very difficult”, Finance Minister Nirmala Sitharaman said on Monday, while indicating that negotiations are still ongoing.

Speaking at the Munich Leaders Meeting in New Delhi, Sitharaman said both sides could still make progress if they find areas where there is room for further negotiation.

“The agreement negotiations are still ongoing, although we’d like to believe that both the sides have reached a plateau beyond which giving or taking might be very, very difficult. But maybe if there are rooms to operate from, both sides would do it,” she said.

Her comments indicate that the negotiations remain active, but that India and the US could be approaching the limits of what each side is prepared to offer on some of the outstanding issues.

What is the status of India-US trade talks?

Sitharaman’s remarks came days after US Trade Representative Jamieson Greer said the India-US trade deal was in the “short strokes”, although it was not imminent.

Greer made the comments after meeting Commerce and Industry Minister Piyush Goyal on the sidelines of the G20 Trade Ministers’ Meeting in Milwaukee.

He said the two countries had identified the “universe” of sticking points and were working to resolve them. Greer also said US President Donald Trump and Prime Minister Narendra Modi could speak again to assess progress in the negotiations.

The talks have focused on expanding market access and reducing trade barriers between the two countries. However, differences remain over tariffs, market access and the treatment of sensitive domestic sectors.

Sitharaman’s description of the negotiations as having reached a “plateau” suggests that the remaining issues could require difficult compromises from both sides.

India-EU trade deal provides a template

Sitharaman also discussed India’s recently concluded trade agreement with the European Union, describing it as an example of how New Delhi is approaching major trade negotiations.

Referring to European Commission President Ursula von der Leyen’s description of the agreement as the “mother of all deals”, Sitharaman highlighted the scale of the economies and markets covered by the pact.

She said India has opened up 92.5 per cent of its tariff lines and around 97 per cent in value terms under the agreement. The EU, meanwhile, has opened up 99 per cent in value terms and possibly 97 per cent of tariff lines.

“Despite decimal points on the numbers, both sides on tariff lines and value are above 90 per cent,” she said.

Sitharaman said the negotiations were structured around the complementarity of the Indian and European economies, while ensuring that the market access offered by India did not undermine the competitiveness of domestic sectors.

“The size of the European and Indian economy, the growing economy that is India, the middle class that is India, the size of the middle class which has got buying capacity in India – you have tied up two very powerful economies for the next 20-30 years,” she said.

India seeks to protect national interest

Sitharaman said India’s trade negotiations need to balance national interests with the changing global trade environment.

“Ultimately, you’re tailoring the agreement to keep national interest alive but to survive in a very challenging global environment where no WTO laws are left to be respected. Everybody has broken the law,” she said.

Her comments come as India seeks to deepen trade ties with major economies while protecting sectors that could face greater competition from imports.

The approach has also involved negotiating market access based on the relative strengths of trading partners rather than pursuing uniform tariff reductions across sectors.

New bilateral investment treaty template

Sitharaman also said India has prepared a new template for bilateral investment treaties (BITs), which is expected to be approved shortly.

The new template is intended to provide a framework for India’s future investment agreements as New Delhi seeks to strengthen investment relationships with other economies.