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    BUSINESS & TRADE                                                          JULY 03, 2026    |  The Indian Eye 36

                     India Bets on UK Trade Pact as US

                                   Negotiations Face Hurdles

               New Delhi sees the India-UK trade agreement as a near-term economic win while a broader

               deal with Washington remains complicated by tariffs, trust issues and geopolitical concerns.

            OUR BUREAU
            London / Mumbai / Washington, DC

               ndia is entering a crucial phase
               in its trade diplomacy, with poli-
            Icymakers  expressing  confidence
            about the benefits of the newly con-
            cluded trade agreement with the
            United Kingdom even as negotiations
            with the United States continue to
            face significant obstacles.
                Speaking during the India Global
            Forum’s UK-India Week 2026 in Lon-
            don, Union Commerce and Industry
            Minister Piyush Goyal described the
            India-UK Comprehensive Econom-
            ic and Trade Agreement (CETA) as
            a landmark pact that would deepen
            economic  engagement  between  the
            two countries and open fresh oppor-
            tunities for businesses.
                The agreement comes at a time        Union Minister of Commerce & Industry Piyush Goyal during an interaction at the India Global Forum’s UK-India Week 2026:
            when India is actively expanding its                         Capital Frontiers, in London on Thursday (@PiyushGoyal X/ANI Photo)
            network of economic partnerships
            to strengthen supply chains, attract   more complex picture.        ed,” she said.                    Aamer said.
            investment and diversify export mar-  Recent meetings between Union     One of the biggest sticking points   She also noted that geopolitical
            kets. According to Goyal, the trade   Commerce Minister Piyush Goyal   remains tariffs. India is seeking great-  considerations  have  influenced  In-
            pact will further advance the Com-  and US Trade Representative Jamie-  er certainty regarding future tariff   dia’s negotiating posture. According
            prehensive Strategic Partnership be-  son Greer in New Delhi produced   arrangements and wants preferential   to Aamer, New Delhi has become
            tween India and the United Kingdom   what  both  sides  described  as  signifi-  treatment compared with competing   more assertive while facing domestic
            while fostering greater trade, invest-  cant progress. However, trade experts   exporters. New Delhi is also seeking   pressure to secure a balanced and fair
            ment, innovation and collaboration.  caution that major differences remain   assurances that Washington will re-  agreement.
               “Highlighted how the India-UK   unresolved and could delay the con-  frain from imposing additional tariff   If an interim agreement is
            Comprehensive Economic and Trade   clusion of a comprehensive agreement.  increases after an agreement is signed.  reached, it could help revive momen-
            Agreement (CETA)  will further ad-    Wendy Cutler, Senior Vice Pres-  “India very much wants a prefer-  tum in a relationship that has faced
            vance the Comprehensive Strategic   ident at the Asia Society Policy In-  ential tariff edge over its competitors,  strains in recent months. “It would
            Partnership between our two nations   stitute (ASPI), said the negotiations   so it is in no hurry to conclude until   certainly help the otherwise strained
            and unlock new opportunities across   have reached a difficult stage despite   there is further clarity on tariff rates   US-India ties and lend some momen-
            sectors,” Goyal said.             recent advances.                  and product exclusions,” Cutler said.  tum to other areas of cooperation,”
                The minister noted that the      “Despite substantial progress  “Moreover, it is seeking assurances   Aamer said. “Both countries will ben-
            agreement would allow businesses   made in recent meetings, concluding   from Washington on no further tariff   efit from a comprehensive deal.”
            in both countries to deepen partner-  a trade deal with India is proving illu-  hikes, which most likely is a bridge too   The contrast between the two ne-
            ships, expand commercial opportuni-  sive,” Cutler said.            far for the Trump team.”          gotiations highlights India’s evolving
            ties and contribute to shared growth   According to Cutler, both coun-  Even  so,  analysts  believe  both   trade strategy. While the UK pact is
            and prosperity.                   tries continue to defend their own pri-  governments remain committed to   poised for implementation and prom-
                Goyal is in London on a three-  orities and red lines. She pointed to a   reaching at least an interim arrange-  ises immediate commercial gains, dis-
            day visit aimed at finalising prepara-  growing trust deficit that has compli-  ment. Farwa Aamer, Director of   cussions with the United States remain
            tions for the implementation of the   cated efforts to bridge remaining gaps.  South Asia Initiatives at ASPI, said   tied up in disputes over tariffs, market
            India-UK CETA  and  the  Double      “Each side has its own priorities   sustained engagement indicates that   access and policy certainty. As India
            Contribution  Convention  (DCC),  and redlines which continue to pre-  an agreement remains achievable de-  broadens its trade partnerships, the
            both of which are scheduled to come   vent a successful conclusion. More-  spite lingering uncertainty.  successful rollout of the UK agreement
            into force on July 15, 2026.      over, developments over the last year   “The sustained effort from both   may offer a model for future econom-
                While optimism surrounds the   have produced a serious trust deficit   sides shows promise toward the deal,  ic engagements even as negotiators
            UK agreement, India’s trade discus-  on the part of Delhi, which makes   but not without a fair share of speed   continue the harder task of securing
            sions with the United States present a   wrapping things up more complicat-  bumps and lingering uncertainty,”  a breakthrough with Washington.

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