New Delhi (Rajeev Sharma): New Delhi and Washington have decided to defer a high-level meeting of chief trade negotiators originally slated to begin this week in the United States. The Indian delegation, led by Joint Secretary in the Commerce Ministry and chief negotiator Darpan Jain, was scheduled to commence a three-day session on February 23 to finalize the legal text of an interim trade pact.
The decision to postpone comes in the wake of a landmark ruling by the Supreme Court of the United States, which determined that the authority to impose tariffs rests with the US Congress rather than the presidency. This judicial intervention has prompted both nations to pause and evaluate the legal implications of the judgment on their bilateral negotiations. Official sources noted that “time was needed to study the implications” before proceeding with the finalization of the first phase of the agreement.
The timing is particularly sensitive given recent volatility in trade policy. Following the court’s order, a 10 percent tariff was initially imposed on all countries, including India, effective February 24 for a duration of 150 days. This figure was subsequently updated to 15 percent, adding a layer of complexity to the discussions. Both sides have agreed that the visit should be rescheduled for a mutually convenient date once a thorough evaluation of these latest developments is complete.
Domestically, the proposed deal has faced scrutiny from the Opposition. The Congress party recently urged the government to halt the signing of the interim agreement, characterizing the current terms as a “surrender” of national interests. They have called for the deal to be placed in “cold storage” and renegotiated, particularly in light of the shifting legal landscape surrounding US trade authority.
Despite the current delay, the framework for this agreement was built on significant diplomatic movement earlier this month. The two nations had reached a preliminary understanding following an executive order that removed punitive tariffs on India regarding its purchase of Russian oil and reduced reciprocal duties. While Commerce Minister Piyush Goyal had previously suggested a March signing and April implementation, the timeline now remains fluid as negotiators navigate these new legal and political hurdles.
