The US and India recently announced a landmark trade agreement that sharply contrasts with the tariff standoff that defined their economic ties just months ago, a shift experts say was spurred in part by New Delhi’s recent free trade agreement with the EU.
President Donald Trump announced the deal last week after a phone call with Prime Minister Narendra Modi, saying the US’ “amazing relationship with India will be even stronger going forward.”
The deal commits both sides to lower tariffs on a wide range of goods, expand market access for key sectors such as energy, agriculture and industrial products, and strengthen cooperation on technology and supply chains.
The arrangement also includes commitments to improve customs procedures, protect intellectual property, and promote fair competition, according to a White House fact sheet released on Monday.
Despite Trump’s assertions about the deal, analysts argue the timing of Washington’s move was no accident. It came weeks after India concluded an ambitious free trade agreement with the EU – a pact likely to redraw global trade flows and threaten US access to India’s booming market.