New Delhi: New uncertainties are emerging regarding the trade agreement between India and America. India’s purchases of Russian oil in the past few months and legal battles in Washington have complicated the path to a bilateral agreement. This agreement was considered economically and strategically important for both the countries, but now there is a delay in its finalization.
The trade relations between India and America have grown rapidly in the last years, due to which this agreement was to be beneficial for both the parties. But America’s concerns about India’s purchase of oil from Russia have increased, especially amid international sanctions imposed on Russia. America has asked India to reduce its dependence on Russian energy, so that foreign policy and security interests are not affected. At the same time, some political and legal maneuvers within America are also affecting this agreement. There are still challenges in striking a balance between the two countries regarding trade rules, immigration policies and intellectual property rights. Apart from this, the debate between the parties and opposition is going on within the Congress for the approval of this agreement in America, which remains an obstacle in moving forward.
Experts believe that India is deciding its policies keeping in mind the importance of diplomatic agreements and energy supply. Maintaining oil relations with Russia is considered essential for India’s energy needs, but it acts as a deterrent to deeper trade relations with the US.
Thus, these obstacles coming in the way of an India-US trade agreement, it becomes necessary to establish the balance needed for trade cooperation between the two countries. Trade experts say that these issues will have to be resolved for long-term cooperation, only then the agreement can be completed soon. At present, the governments of both the countries are trying to resolve this complex situation through dialogue.
