India has announced the postponement of its planned trade delegation to Washington, originally scheduled for February 22, 2023.This decision is primarily due to the uncertainty created by the US Supreme Court's recent ruling that struck down tariffs imposed by former President Donald Trump.
Source:
straitstimes.comThe situation escalated after Trump's move to levy a temporary 15% tariff on US imports from all countries, which was the maximum allowed by law following the court's decision on February 20.
Source:
tasnimnews.irThe trade delegation was expected to finalize an interim trade deal that included a framework for reducing punitive tariffs of 25% on certain Indian exports linked to India's Russian oil purchases.
Sources:
thestar.com.mytbsnews.netAccording to a source in India's Trade Ministry, the decision to defer the visit was made after discussions between officials from both countries.The source, who remained anonymous due to the sensitive nature of the matter, also mentioned that no new date for the visit has been determined.
Source:
straitstimes.comThe trade deal was set to significantly cut US tariffs on Indian goods down to 18% and was part of a broader agreement where India would commit to purchasing US items worth $500 billion over five years.These items ranged from energy supplies to aircraft parts, as well as precious metals and technology products.
Sources:
tasnimnews.irthestar.com.myAdding to the complexity of the situation, India's opposition Congress party has called for the interim pact to be put on hold.They are urging a renegotiation and questioning Prime Minister Narendra Modi's decision to issue a joint statement prior to the court's ruling.
Sources:
thestar.com.mykhaleejtimes.comIn light of the recent developments, the Indian Trade Ministry indicated that it is currently studying the implications of the Supreme Court's judgment and subsequent US announcements.
Source:
tbsnews.netTrade Minister Piyush Goyal previously noted that the interim pact could still be enacted by April if outstanding issues are resolved during the delayed visit to Washington.
Source:
khaleejtimes.comThis postponement marks one of the first concrete reactions among Asian nations following the US Supreme Court's ruling, highlighting how trade relations between the two countries may be influenced by legal and political developments.
Source:
tasnimnews.irThe future of the interim trade deal remains uncertain as both sides work to navigate the implications of the recent tariff changes and the ongoing dialogue between the US and India.As the situation unfolds, stakeholders from both countries will be closely monitoring the developments to assess their impact on future trade relations.
