US trade talks to stick to terms agreed earlier

Hindustan Times

2 days ago

India and the United States are intensely engaged to conclude a mutually beneficial early trade deal by the end of this month, 'strictly' within the bilaterally agreed framework of March 29, irrespective of the ongoing political rhetoric and independent of their strategic relationships with other countries, people in the know said on Sunday. he two countries finalised the detailed terms of reference (ToR) to enter into negotiations of the bilateral trade agreement (BTA) on March 29 during their first physical round of talks in New Delhi. (PTI)
It may be part of the negotiations that India and the US may purchase and sell more energy as an outcome of the deal. But the agreed framework does not proscribe either nation from purchasing oil and gas from any third country of its choice, they said, requesting anonymity.
The two countries finalised the detailed terms of reference (ToR) to enter into negotiations of the bilateral trade agreement (BTA) on March 29 during their first physical round of talks in New Delhi. Later, on April 22, US Vice President JD Vance officially announced the finalisation of the ToR for bilateral 'trade negotiations' during his India visit, and called it 'a vital step toward a final deal' between the two nations in a post on X that day.
ToR is a set of bilaterally agreed road map for BTA negotiations. Both sides have concluded five physical rounds of negotiations and several virtual discussions within that framework. In the process, the two sides have already reached some common ground, substantial enough to announce an interim deal, they said.
'We are engaged through virtual mode as on date and likely to iron out remaining differences when the American negotiating team visits India for the sixth physical round this month,' one of the people cited above said. The US negotiating team is expected to land in New Delhi on August 24 to participate in the sixth round of talks from August 25. According to the people, some concrete outcomes are expected after the successful conclusion of the sixth round towards the end of August, despite US President Donald Trump's recent statements and tariff actions against India.
Trump on July 30 announced punitive tariffs on Indian goods through a post on Truth Social. The announcements involved 25% on Indian goods shipped to America and an unspecified levy for purchasing Russian oil. Trump's reaction was an outcome of India refusing to budge on retaining protections for its agriculture, dairy and micro, small and medium enterprises (MSME) sectors from unfettered American imports.
Another factor behind Trump's reaction was India importing almost one-third of its crude oil requirements from Russia. About that, Trump on July 31 said on Truth Social: 'I don't care what India does with Russia… They can take their dead economies down together, for all I care.'
According to the US Energy Information Administration's (EIA) country analysis updated on February 6, 2025, Russia was the primary source of India's crude oil and condensate imports in 2023, accounting for about 39% of its total imports, followed by Iraq (19%), Saudi Arabia (16%), United Arab Emirates (5%) and the US (4%). India imported 4.5 million barrels a day (b/d) of crude oil and condensate in 2023, it said.
'In 2022, after the United States and EU imposed sanctions on Russia, India began purchasing Russia's crude oil at a discount, increasing its imports more than sixfold to 740,000 b/d,' the report said.
Energy hungry India, which is the world's third largest importer after the US and China, imports over 87% of the crude oil it processes. 'Economical and reliable energy supply is the top priority of India's energy security, and heavily discounted crude from Russia meets both the requirements. Our energy sourcing is diversified, involving 39 countries. We have recently increased energy imports from the US and this may go up further depending on commerciality. But our sourcing from Russia would not stop under any external pressure. We are not bound by any unilateral sanction as we follow the UN sanction,' a second person said.
Energy security is India's key concern and the US is endowed with the natural resource. The proposed BTA may have some definite commitments for enhanced energy imports from the US, depending on the long-term commercial viability, the people mentioned above said. 'But the deal cannot and will not restrict India's freedom in pursuing its independent energy sourcing. We are buying crude oil from about 40 countries, including the US, the Middle East and Russia. And the policy of diversified sourcing will continue,' the first person said.