**

India is pressing the United States for a firm commitment that no new tariffs will be imposed after the finalization of a bilateral trade agreement (BTA), according to sources familiar with the ongoing negotiations. This demand underscores India's deep-seated concerns regarding the unpredictability of US trade policy under previous administrations, particularly the era of President Donald Trump’s “America First” approach. The potential for future tariff hikes casts a long shadow over the negotiations, highlighting the complexities and sensitivities involved in forging a comprehensive trade deal between the world's largest democracy and the global economic powerhouse.

India's Concerns: Beyond the Bilateral Trade Agreement

The request for a tariff guarantee transcends the immediate scope of the BTA. It reflects a broader strategic objective: to secure a stable and predictable trading relationship with the US. India's apprehension stems from several factors:

• Past Experiences: The imposition of tariffs on Indian steel and aluminum during the Trump administration left a lasting impact. This experience fueled concerns that future administrations might resort to similar protectionist measures. These past trade wars significantly affected Indian exports and investor confidence.

• Sectoral Concerns: Specific Indian sectors, including pharmaceuticals, textiles, and agricultural products, remain vulnerable to potential US tariff increases. The absence of a cast-iron guarantee increases uncertainty and discourages long-term investment in these crucial sectors.

• WTO Compliance: India also wants assurances that any future trade actions by the US will be compliant with World Trade Organization (WTO) rules. This is crucial to maintaining a fair and transparent trading environment.

Navigating the Complexities of US Trade Policy

The US trade policy landscape has been marked by significant volatility in recent years. The unpredictability inherent in this environment makes it challenging for India to make long-term investment decisions and commitments regarding trade with the US. This uncertainty extends beyond tariffs to encompass other trade-related measures, creating a challenging backdrop for negotiations.

Keyword Focus: US-India Trade Deal, India-US Trade Relations, Bilateral Trade Agreement (BTA), Donald Trump Tariffs, WTO Compliance, India Trade Policy, US Trade Policy, Trade War, Protectionism, Tariff Guarantee, India Exports, Investment, Agricultural Products, Pharmaceuticals, Textiles, Steel, Aluminum.

The Stakes: A Deeper Look at the BTA

The potential benefits of a comprehensive BTA between India and the US are substantial, encompassing:

• Increased Trade Volumes: A mutually beneficial agreement could significantly boost bilateral trade flows, unlocking new market opportunities for both nations.

• Enhanced Investment: A stable trade environment fosters increased foreign direct investment (FDI), creating jobs and promoting economic growth in both countries.

• Technological Collaboration: The BTA could facilitate greater collaboration in technology, innovation, and research and development.

• Strategic Partnership: A strong economic relationship enhances the broader strategic partnership between the two nations, fostering cooperation on various global issues.

However, the absence of a clear guarantee against future tariff impositions risks derailing the progress of the BTA negotiations and hindering the realization of these potential benefits.

The Path Forward: Building Trust and Transparency

For the BTA to succeed, it's crucial for the US to address India's concerns regarding tariff predictability. This requires a transparent and collaborative approach, built on mutual trust and understanding. This means clearly outlining the terms and conditions related to tariff policy and providing explicit assurances to avoid any future protectionist measures. The US needs to demonstrate a commitment to a stable and predictable trade relationship, allowing India to proceed with confidence.

Keyword Focus: Foreign Direct Investment (FDI), Economic Growth, Technological Collaboration, Strategic Partnership, Trade Negotiations, Mutual Trust, Transparency, Predictable Trade Relationship, Market Access, Investment Opportunities

Beyond Tariffs: Addressing Other Trade Barriers

While the tariff guarantee is a crucial aspect of the negotiations, other trade barriers also need to be addressed to ensure a comprehensive and mutually beneficial BTA. These include:

• Non-Tariff Barriers: These include regulatory hurdles, sanitary and phytosanitary (SPS) regulations, and technical barriers to trade (TBT). Addressing these non-tariff barriers is essential to facilitate smoother trade flows.

• Market Access: Both countries need to provide greater market access for each other's products and services. This involves addressing specific sectoral concerns and creating a level playing field for competition.

• Intellectual Property Rights (IPR): A robust framework for protecting intellectual property rights is crucial to incentivize innovation and technological development.

Conclusion: A Crucial Moment for US-India Relations

The demand for a tariff guarantee highlights the critical juncture in US-India trade relations. Securing a comprehensive and mutually beneficial BTA requires addressing India's legitimate concerns regarding tariff predictability and fostering a climate of trust and transparency. Failure to do so risks jeopardizing the potential benefits of the agreement and undermining the strategic partnership between the two nations. The US needs to understand that a stable and predictable trade relationship is crucial for building confidence and encouraging deeper economic cooperation with its important strategic partner, India. The coming months will be pivotal in determining whether these negotiations succeed in forging a stronger economic link between the two global giants.