Highlights:
- USIBC wants the trade deal completed this year.
- Piyush Goyal is visiting the US for G20 trade talks.
- New US tariffs have complicated negotiations.
- Both sides finalized a framework for the first phase in February.
- USIBC says a deal could boost trade and manufacturing.
The US India Business Council (USIBC) is calling on India and the United States to conclude their trade agreement before the end of 2026, ahead of Commerce Minister Piyush Goyal’s visit to the US.
USIBC president Atul Keshap said completing a reciprocal trade agreement this year would strengthen the economic and strategic relationship between the two countries.
“The United States and India have achieved truly historic milestones over the last two decades. Finalising a Reciprocal Agreement on Trade before year's end would be their greatest accomplishment yet,” Keshap said in a statement.
The council also called on both governments to use the current opportunity to reduce trade barriers and tariffs.
Tariffs add pressure to negotiations
India and the US announced in February that they had finalized the framework for the first phase of their bilateral trade agreement.
However, changes in the US tariff landscape have since led to additional negotiations.
The US decision to impose 10 per cent forced-labor tariffs on India, along with the possibility of a Section 301 investigation into structural “excess industrial capacity” and subsidies, has added uncertainty to the process.
The recent passage of the Russia sanctions Act by the US Congress has also become another factor affecting the outlook for an early conclusion of the agreement.
Keshap said greater reciprocal trade could build on what USIBC described as record investments in 2026.
Goyal to meet US trade representative
Goyal is scheduled to travel to the US for the G20 Trade Ministerial, which will take place in Milwaukee, Wisconsin, from September 30 to October 1.
During the visit, Goyal is also expected to hold a bilateral meeting with US Trade Representative Jamieson Greer. The two are set to discuss progress in negotiations for the trade agreement.
Keshap said USIBC members remain committed to strengthening economic cooperation between the two countries.
“US-India Business Council members are steadfast champions of this partnership. We look forward to working with both governments to accelerate collaboration between the world's largest economy and its fastest-growing major economy,” he said.
According to Keshap, a trade agreement could lower barriers, expand consumer markets, support manufacturing and contribute to cooperation in areas including artificial intelligence.
