Samarkand: US Secretary of State Marco Rubio indicated on Monday that a trade agreement between the US and India could be finalized soon. Speaking to reporters in Samarkand, Uzbekistan, Rubio said the two countries are very close to finalizing the agreement.
Rubio will arrive in Mumbai on Tuesday, where he will meet with Indian Foreign Minister S. Jaishankar. He is also scheduled to visit Jamnagar later in the week, home to one of the world’s largest refineries.
Rubio said, “We are currently trying to finalize a trade agreement with India. We are very close to completing it.”
US making decisions keeping India’s energy needs in mind
Rubio said the US has had to ease some sanctions in the past few months due to the impact on global energy supply and prices. He stated that it is important to consider many factors when making foreign policy decisions.
He noted that every country’s circumstances are unique. Geography is also important, as some countries find it difficult to access alternative energy sources. However, he clarified that this is not an excuse; rather, it is essential to balance all these factors in foreign policy decisions.
Previously, US President Donald Trump decided to temporarily suspend several restrictions on fuel sales from Russia. Following this, Rubio, calling India a vital US ally, stated that India’s energy needs should be considered before imposing tariffs or sanctions.
Countries buying oil from Russia could face tariffs of up to 100%
According to Rubio, Lindsey O. Graham’s legislation would have imposed tariffs of up to 100% on goods coming into the US from the five largest importers of Russian crude oil or natural gas, including India and China.
However, proposed action under this legislation has been put on hold. The US has decided to take 60 days to assess the economic impact.
Rubio stated that these sanctions will not only impact Russia, but could also impact countries like India. He stated that President Trump wants to understand the impact of imposing sanctions and tariffs on the global economy as well as the US economy.
He stated, “Countries like India have voluntarily diversified their energy sources, but they still receive a significant amount of energy from Russia. It’s not easy to change energy supply sources overnight. India is also an important ally and partner of the US. Therefore, we need time to study all aspects.”
Global conflicts impact energy supply and prices
Rubio stated that the US President is taking into account the changing geopolitical situation when making decisions related to sanctions.
He cited the Russia-Ukraine war, tensions with Iran, the situation in the Strait of Hormuz, and attacks by Houthi rebels, saying that these events are impacting global energy supplies.
According to Rubio, attacks on energy infrastructure and regional conflicts are increasing pressure on global market prices. Therefore, it is important to understand the broader impact of sanctions and tariff decisions.
Trump Waives Sanctions Under the Graham Act
On Friday, President Trump issued a waiver under Section 115 of the Graham Act, waiving certain sanctions. This provision empowers the US President to waive certain sanctions and tariff provisions of the law based on national interests.
In his order, Trump stated that he had sent confirmation to the US Congress that such a waiver was in the US national interest. He also submitted a report explaining the basis for his decision.
This law allowed for tariffs of up to 500 percent on goods originating from Russia and up to 100 percent on goods originating from the five largest importing countries that purchase Russian crude oil or natural gas.
Emphasis on strengthening strategic partnership during India visit
During his visit to India, Marco Rubio will meet with senior government officials. These meetings are expected to focus on strengthening the India-US strategic partnership, sharing views on regional and global developments, and discussing possibilities for increased energy cooperation.
Rubio’s latest statement on the trade agreement comes at a time when the two countries are discussing issues related to trade, energy, and strategic cooperation.