India, US postpone interim trade deal talks
Indian and American officials have postponed a three-day meeting scheduled for this week to discuss their interim trade deal, people aware of the matter said, describing a chain of events since Friday as likely to impact the March timeline New Delhi and Washington had agreed upon for an interim trade deal.
The US Supreme Court on Friday struck down President Donald Trump’s use of emergency powers to impose tariff rates of his choosing, forcing his administration to rely on other legal provisions. For now, the administration has used Section 122 of the Trade Act of 1974 but is legally vetting a separate provision, Section 338, that could overcome the 15% rate and 150-day deadline limits that apply.
This, the people said, indicates the US has not yet settled on a strategy since the court outlawed the last one — uncertainty that they said complicates negotiation. “Initially the US government said it could evoke Sections 232, 301, and 122 to counter its Supreme Court’s verdict. Now talks are on about 338. Any enduring pact between two sovereigns is not possible in such fluid situation, amid high-level of uncertainties,” one of them said, asking not to be named.
A second person confirmed that the departure of chief negotiator Darpan Jain, due for Sunday, has been postponed. “The two sides are of the view that the proposed visit of Indian chief negotiator and the team be scheduled after each side has had the time to evaluate the latest developments and its implications. The meeting will be rescheduled at a mutually convenient date,” the person said, asking not to be named.
The postponement clouds the broader negotiating calendar. The engagement in the coming week was meant for both to finalise the legal text of the interim bilateral trade agreement, ahead of an expected visit by US Trade Representative Jamieson Greer in March to sign the deal. All such meetings from both sides are now on hold, the people mentioned above said.