NEW DELHI — A proposed trade agreement between India and the United States could substantially increase bilateral commerce, but disagreements over key issues may complicate efforts to finalize a deal, Trade and Economic Council President John Kavulich said Tuesday.
Kavulich said both governments have suggested that negotiations are approaching a breakthrough, although their public statements provide few details about the actual progress made.
“Both countries are signalling that they are close to each other, but they are speaking in diplomatic language,” he said.
He noted that it remains uncertain whether negotiators have resolved their most contentious differences or intend to move forward with agreements in less controversial areas while leaving difficult issues for future discussions.
Kavulich emphasized that a trade agreement would benefit both economies, particularly given their extensive commercial relationship and the opportunity to expand trade beyond its current level of hundreds of billions of dollars.
However, he warned that the range of issues under negotiation could make a comprehensive agreement difficult to reach in the near term.
While countries can often establish common ground on broad trade objectives, negotiations become more complicated when discussions turn to individual provisions and specific commitments.
“It is difficult to say whether they will be able to agree on everything,” Kavulich said.
He also addressed the controversy surrounding India’s purchases of Russian crude oil, an issue that has added political pressure to the broader economic relationship.
Indian companies import Russian oil for refining and processing, with some petroleum products subsequently exported to international markets.
Kavulich said the practice carries different political implications for President Donald Trump, members of Congress, other American political leaders, nongovernmental organizations, Ukraine and the European Union.
Although India’s Russian oil imports have drawn criticism, Kavulich said energy costs remain a major consideration for governments, businesses and consumers.
He argued that countries must balance political concerns with their economic need for affordable energy, noting that buyers generally seek the lowest-cost available supplies.
Despite the challenges, Kavulich maintained that a trade agreement offers substantial economic opportunities for both countries, even as uncertainty remains over whether negotiators can resolve all outstanding issues. (Source: IANS)
