India-US Trade Deal: The long negotiations between India and the United States over a new trade agreement have finally reached the last mile. Officials on both sides say the deal is now in its “final stage”, and there is a strong possibility that it will be signed before the end of November. The expectation inside New Delhi is that the moment this agreement takes effect, the steep US tariff, presently around 50 percent on several categories of Indian products, will come down.
The possible tariff cut has already triggered fresh calculations across South Asia. Pakistan, in particular, is watching every step with unusual intensity. Diplomats in Islamabad believe the agreement will reveal how Washington intends to shape its economic presence in the region over the next decade. If the deal moves forward smoothly, India-US trade could rise to $500 billion by 2030, something that has caught the attention of every neighbouring capital.
A report in Dawn cited Pakistani diplomatic sources saying, “Pakistan and other South Asian countries are hoping that the agreement will encourage the United States to expand trade with the rest of the region as well.”
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The official added that Islamabad wants Washington to extend the same level of economic engagement to smaller South Asian economies that it offers India.
According to the official, this is one of the reasons the joint US-Pakistan statement on bilateral trade is still on hold. Pakistan’s diplomats have been in discussions with the Office of the US Trade Representative, trying to settle the last details before making anything public.
Both sides continue to work on what officials describe as “loose ends” that must be tied up before the statement is released.
Pakistan Watches Every Move
The key concern in Islamabad is how to benefit from the American tariff concessions on goods made from raw materials imported from the United States. Pakistani officials are examining whether the same relaxations, once extended to India, could be used to increase Pakistan’s own exports to the American market.
For now, Islamabad prefers to stay silent. As one source said, “Pakistan is avoiding any immediate announcement. They are waiting for the India-US agreement to take its final shape.”
Pakistan’s Finance Minister Muhammad Aurangzeb, had travelled to the United States in October for World Bank meetings. During that visit, he said that an official statement on Pakistan-US trade would be released “within a few weeks”.
US Tariff On India Set To Drop
The United States imposed a 19 percent tariff on Pakistani goods on August 1, far lower than the 50 percent duty applied to India. This gap has given Islamabad a rare edge. As of now, Pakistani firms are exporting more easily to America than their Indian counterparts.
Washington had earlier kept India’s tariff at 26 percent, but it was doubled to 50 percent after New Delhi expanded its purchases of Russian oil. With India now reducing its imports from Moscow, American officials have reportedly become more open to easing the tariff burden once the trade agreement is signed.
The coming weeks will decide whether this long pursuit of a trade breakthrough finally ends in success. Washington and New Delhi appear ready. Islamabad is also waiting to the deal to be inked, hoping it will reveal how much space remains for Pakistan, and for South Asia, to grow in America’s next phase of economic outreach.
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