Mumbai: India and the United States are on the verge of finalizing an interim bilateral trade agreement, with negotiators having resolved 99% of the outstanding issues between the two countries, according to US Ambassador Sergio Gor. Speaking at Citi’s 2026 India Conference in Mumbai on Wednesday, Gor expressed confidence that the agreement would be concluded within the next few weeks, marking a significant milestone in the growing economic partnership between New Delhi and Washington.
“We’re very hopeful that the deal will get accomplished over the next weeks, several weeks. But it’s not going to be years. We’re very close to getting that done,” Gor said while responding to questions about the progress of trade negotiations.
The remarks come months after India and the United States issued a joint statement on February 7 outlining the broad framework for the first phase of a Bilateral Trade Agreement (BTA). Since then, officials from both sides have been working to translate the framework into a legally binding agreement covering multiple sectors and trade-related issues.
Despite the positive outlook, trade relations between the two countries continue to face challenges. Earlier this week, the Office of the United States Trade Representative (USTR) proposed trade actions against 60 economies, including India, following investigations conducted under Section 301 of the US Trade Act of 1974. According to the USTR, the acts, policies, and practices of these economies were found to be “unreasonable and burden or restrict US commerce,” making them subject to potential action under American trade laws.
India was also listed among 54 economies that the USTR said had not effectively enforced prohibitions on imports produced using forced labour. The list includes several major economies and US partners such as China, Japan, Australia, Bangladesh, the United Kingdom, Singapore, Saudi Arabia, and the United Arab Emirates.
The timing of the proposed USTR action is notable, as it coincides with ongoing efforts by both countries to conclude the first tranche of the bilateral trade agreement. Over recent months, Indian and American negotiators have held multiple rounds of discussions covering market access, tariff reductions, digital trade regulations, agricultural products, and investment-related concerns.
Trade tensions have also been influenced by the reciprocal tariff policies introduced during the Trump administration. India was among the countries threatened with higher tariffs in 2025 before Washington temporarily suspended some measures to allow space for negotiations. New Delhi has consistently maintained that any trade pact must be balanced, equitable, and protective of sensitive domestic sectors while expanding economic opportunities.
Addressing concerns about US tariff actions, Ambassador Gor emphasized that the measures were not directed specifically at India but formed part of a broader global trade strategy. He noted that the proposed trade arrangement places India in a comparatively advantageous position relative to many countries in the region.
“The interim trade deal that was announced by the White House and by the Prime Minister here has India at a lower rate than any of your neighbours,” Gor said, suggesting that India could gain a competitive edge in regional trade dynamics once the agreement is implemented.
While declining to disclose specific details about the remaining issues under negotiation, Gor indicated that most unresolved matters are largely technical in nature. These include legal drafting, implementation schedules, and procedural aspects that need to be finalized before the agreement can be formally signed.
Seeking to reassure observers about the pace of negotiations, Gor pointed out that major international trade agreements often take years to conclude. “The European Union deal with India took 19 years. These are massive, complex deals that involve not hundreds but tens of thousands of points sometimes,” he remarked.
The ambassador also highlighted the strong political backing for deeper bilateral ties. According to Gor, US President Donald Trump places significant importance on relations with India and maintains a close rapport with Prime Minister Narendra Modi. “President Trump deeply values the relationship with India, he deeply values his friendship with the Prime Minister, and he wants to move things on a further path,” he said.
Underscoring the scale of economic cooperation between the two nations, Gor noted that bilateral trade in goods and services has grown eleven-fold over the past two decades, rising from approximately $20 billion to $220 billion. He further described India as a trusted strategic partner in key sectors including pharmaceuticals, critical minerals, semiconductors, artificial intelligence, and quantum technologies.
With negotiations reportedly entering their final phase, the expected interim agreement could pave the way for broader economic cooperation and serve as the foundation for a more comprehensive India-US trade partnership in the years ahead.
