New Delhi, Oct 20 (IANS) A potential trade agreement between India and the United States could significantly expand bilateral commerce, although resolving differences across a wide range of issues may prolong negotiations, Trade and Economic Council President John Kavulich said on Tuesday.
Speaking to IANS, Kavulich said both countries had indicated that they were moving closer to an agreement, but their diplomatic statements offered little clarity on how much progress had actually been made.
“Both countries are signalling that they are close to each other, but they are speaking in diplomatic language,” he said, adding that it remained unclear whether the two sides had resolved major contentious issues or might set them aside to announce agreements on other areas.
Kavulich said a trade deal was important for both countries, given the scale of their economic relationship and the potential to increase bilateral trade, which is already worth hundreds of billions of dollars.
However, he cautioned that the breadth of trade-related issues between the two economies could make a comprehensive agreement difficult to conclude quickly.
Negotiations often progress more easily at a broad level, but reaching consensus on specific provisions can prove considerably more challenging, he said. Parties may appear close to an agreement during the initial stages of discussions, only to find that substantial differences remain when negotiations move into the finer details.
“It is difficult to say whether they will be able to agree on everything,” Kavulich said, highlighting the complexity of reaching a comprehensive trade deal between India and the US.
On India’s imports of Russian oil, Kavulich said the issue had become a political concern, particularly because Indian companies import Russian crude, refine and process it, and in some cases re-export the resulting products to other markets.
He noted, however, that the issue carried different political implications for US President Donald Trump compared with members of the US Congress, other American political figures, non-governmental organisations, Ukraine and the European Union.
While Russian oil imports may attract criticism from these groups, energy affordability remains a consideration for countries and businesses, Kavulich said.
Ultimately, he added, consumers and economies need energy and generally prefer to source it from the cheapest available suppliers.
–IANS
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