India-US Trade Talks: Russian Oil Tariff Threat Adds Fresh Hurdle, But Deal Remains On Track

I dia’s
t ade
egotiatio s
with
the
U ited
States
a e
faci g
a othe
laye
of
u ce tai ty
afte
a
bipa tisa
US
Se ate
Bill
p oposed
ta iffs
of
up
to
100
pe
ce t
o
cou t ies
buyi g
Russia
e e gy.
Yet,
eve
as
the
p oposed
measu e
aises
co ce s
i
New
Delhi,
the
I dia
gove me t
has
i dicated
that
talks
with
Washi gto
emai
active
a d
that
both
sides
co ti ue
to
wo k
towa ds
a
t ade
ag eeme t.

The
latest
developme t
comes
at
a
se sitive
stage
fo
I dia,
which
is
simulta eously
deali g
with
existi g
US
ta iffs,
a
o goi g
i vestigatio
i to
its
ma ufactu i g
policies
a d
the
questio
of
how
its
pu chases
of
Russia
c ude
could
affect
access
to
the
Ame ica
ma ket.

Fo
ow,
howeve ,
the
gove me t
is
st essi g
e gageme t
athe
tha
co f o tatio .

“We
a e
e gagi g
with
the
US
egula ly,& dquo;
epo ted
Busi ess
Sta da d
citi g
a
gove me t
official,
desc ibi g
the
discussio s
as
“ eassu i g& dquo;.

P edictability
Is
Now
A
Key
Objective
Fo
I dia

Comme ce
Sec eta y
Rajesh
Ag awal
has
said
that
I dia
a d
the
US
emai
i
egula
co tact
a d
a e
committed
to
the
u de sta di g
eached
i
Feb ua y,
eve
though
the
te ms
of
the
p oposed
t ade
deal
a e
ow
bei g
evisited.

The
two
cou t ies
had
issued
a
joi t
stateme t
i
Feb ua y
outli i g
a
i itially
ag eed
t ade
f amewo k.
Its
te ms
subseque tly
came
u de
evisio
afte
the
US
Sup eme
Cou t
sc apped
the
ecip ocal
ta iffs
imposed
by
US
P eside t
Do ald
T ump.

Ag awal
said
the
eve tual
ag eeme t
should
p ovide
g eate
ce tai ty
fo
busi esses
o
futu e
ta iff
co ditio s.

“My
se se
is,
i
eve y
deal,
o e
of
the
key
outcomes
is
p edictability
i
t ade
elatio s.
I
thi k
that
e deavou
will
emai
he e
as
well,& dquo;
he
said.

That
objective
has
gai ed
impo ta ce
as
the
US
co side s
f esh
ta iff
measu es
li ked
to
I dia’s
Russia
oil
pu chases.

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Successio :
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Why
Tata
T usts
A e
Explo i g
Legal
Optio s
Afte
Cha d aseka a
Exit

Why
The
Russia
Oil
Bill
Matte s
To
I dia

I dia’s
depe de ce
o
Russia
c ude
has
i c eased
sig ifica tly
i
ece t
mo ths.

Acco di g
to
data
cited
by
the
Global
T ade
Resea ch
I itiative
(GTRI),
Russia
oil
accou ted
fo
a
estimated
52
pe
ce t
of
I dia’s
c ude
impo ts
i
July,
compa ed
with
48.6
pe
ce t
i
Ju e.

I dia’s
impo ts
f om
Russia
also
ose
to
$8.91
billio
i
July,
ea ly
twice
the
$4.84
billio
eco ded
a
yea
ea lie .

The
Fi a cial
Exp ess
epo ted
a
eve
highe
sha e
based
o
c ude
shipme t
data,
with
Russia
oil
pu chases
eachi g
2.78
millio
ba els
pe
day
i
July,
o
55.3
pe
ce t
of
I dia’s
total
c ude
pu chases
of
5.03
millio
ba els
pe
day
th ough
July
29.

The
umbe s
explai
why
the
p oposed
US
legislatio
has
become
a
impo ta t
issue
i
the
o goi g
t ade
discussio s.

100%
Ta iff
Is
P oposed,
Not
Yet
I
Fo ce

The
Se ate
measu e
does
ot
immediately
impose
a
100
pe
ce t
ta iff
o
I dia
goods.

The
US
Se ate
passed
the
bipa tisa
Sa ctio i g
Russia
a d
I a
Act
of
2026
o
August
7,
which
would
empowe
the
US
P eside t
to
impose
ta iffs
of
up
to
100
pe
ce t
o
cou t ies
pu chasi g
Russia
c ude.
The
legislatio
still
eeds
to
go
th ough
the
US
legislative
p ocess
befo e
it
ca
become
law.

The
Bill
also
co tai s
a
p ovisio
allowi g
the
US
P eside t
to
waive
the
p oposed
sa ctio s
if
he
dete mi es
that
doi g
so
is
i
the
US
atio al
i te est.

Citi g
a
I dia
gove me t
official,
FE
desc ibed
the
legislatio
as
a
i te al
US
p ocess
a d
said
New
Delhi
would
co ti ue
e gagi g
with
Ame ica
autho ities
while
wo ki g
towa ds
a
ea ly
co clusio
of
the
Bilate al
T ade
Ag eeme t.

Existi g
US
Ta iffs
A e
Al eady
Pa t
Of
The
Negotiatio s

The
Russia -oil
p oposal
comes
o
top
of
existi g
ta iff- elated
issues
betwee
the
two
cou t ies.

I dia
goods
cu e tly
face
a
additio al
10
pe
ce t
ta iff
u de
Sectio
301
of
the
US
T ade
Act
of
1974.

Sepa ately,
the
US
is
co ducti g
a othe
Sectio
301
i vestigatio
i to
I dia’s
policies
elati g
to
excess
ma ufactu i g
capacity.
The
Office
of
the
U ited
States
T ade
Rep ese tative
(USTR)
has
ot
yet
eleased
the
d aft
fi di gs
of
that
i vestigatio .

I dia
has
al eady
pa ticipated
i
the
p ocess
a d
submitted
its
espo se,
Ag awal
said.
O ce
the
d aft
fi di gs
a e
eleased,
New
Delhi
will
have
a othe
oppo tu ity
to
make
its
submissio s
befo e
the
fi al
fi di gs
a e
issued.

The
existi g
additio al
ta iff
followed
a
US
i vestigatio
i to
laws
i
60
majo
t adi g
pa t e s
that
e able
impo ts
of
goods
made
usi g
fo ced
labou
a d
pote tially
affect
US
busi esses.

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Delhi
Wa ts
The
T ade
Dialogue
To
Co ti ue

Despite
the
additio al
p essu e
c eated
by
the
Russia -oil
legislatio ,
I dia
has
ot
i dicated
that
it
i te ds
to
step
away
f om
egotiatio s.

Ag awal
decli ed
to
comme t
di ectly
o
the
p oposed
US
Bill,
sayi g
it
was
pa t
of
Washi gto ‘s
legislative
p ocess.

“I
thi k
the
Russia
oil
ta iff
Bill
is
a
legislative
p ocess
i
the
US
that
is
u de way.
I
do & squo;t
thi k
I
should
comme t
o
that.
It& squo;s
thei
i te al
p ocess,& dquo;
he
said.

He
added
that
I dia
emai s
e gaged
with
the
US
o
the
t ade
ag eeme t
a d
that
both
cou t ies
co ti ue
to
mai tai
egula
co tact.

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