India-US Trade Pact Signals Progress Amid Lingering Trust Deficit, Says CNAS Chief Lisa Curtis

Lisa Curtis, Director of the Centre for New American Security (CNAS), has hailed the newly announced India-US trade deal as a "major step forward" in bilateral relations.
Speaking to ANI in Washington DC on Tuesday, she described the agreement—revealed on Monday—as a significant boost following months of diplomatic strain. Under the deal, the United States has reduced tariffs on Indian goods to 18 per cent, marking a key concession.
Curtis cautioned, however, that the relationship will not recover overnight. She pointed to a loss of trust over the past 10 months, driven not only by trade disputes but also by disagreements on regional security matters. These include differing views on the aftermath of the recent India-Pakistan conflict, which exacerbated tensions between New Delhi and Washington.
The CNAS Director outlined several factors that likely paved the way for the deal's conclusion. First, she highlighted the role of US Ambassador Sergio Gor, who arrived in New Delhi on 9 January and made positive statements in recent weeks. Gor reportedly conveyed the strategic importance of the pact directly to President Donald Trump, influencing the US stance.
Another contributing element was India's sharp decline in Russian oil imports, particularly in December. Curtis noted that this trend caught the attention of the Trump administration, which has long pressed New Delhi to reduce its reliance on Moscow amid global energy dynamics. The move was seen as a positive signal from India.
India's recent free trade agreement with the European Union also played a part, Curtis suggested. Concluded last month during a state visit by European Commission President Ursula von der Leyen and European Council President Antonio Costa, the EU pact demonstrated New Delhi's alternative market options. This may have spurred Washington to expedite its own trade engagement to avoid being side-lined.
Curtis described the deal as mutually beneficial, with tariffs on Indian goods dropping to 18 per cent—a major win for exporters from India. For the US, the agreement addresses long-standing demands for greater market access for American farmers, though Prime Minister Narendra Modi held firm on protecting Indian agriculture.
"Neither side got everything it wanted," Curtis observed, emphasising the compromises inherent in such negotiations. India's reduced Russian oil purchases met a key US demand, while Modi successfully shielded domestic farmers from broader concessions. This balanced outcome underscores the pragmatic nature of the accord.
Looking ahead, the trade deal could inject fresh momentum into the Quadrilateral Security Dialogue (Quad), Curtis indicated. With the pact now in place, it opens the door to planning a presidential visit by Trump to India—something he had explicitly linked to trade resolution.
Trump had previously stated he would not visit India until the agreement was finalised. Curtis suggested this could pave the way for a Quad leaders' summit in New Delhi, as originally envisioned last autumn. Such a gathering would reaffirm the strategic partnership among the US, India, Japan, and Australia.
Scheduling challenges remain, however. Curtis noted potential complications from Trump's planned April meeting with Chinese President Xi Jinping, which could limit time for a major India trip. "It is not clear if there is enough time to plan a major visit right now," she added, tempering expectations for immediate high-level engagements.
While the trade deal represents tangible progress, Curtis stressed the need for sustained efforts to rebuild trust. The past year's frictions—spanning trade imbalances, energy policies, and regional conflicts—have left scars that deeper dialogue must heal. For India and the US, this pact serves as a foundation for broader strategic alignment in an increasingly volatile Indo-Pacific.
Based On ANI Report
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