While the United States has been known for some questionable trade relations - we are well known for our robust and diverse trade relationships with many foreign countries but now the U.S. and India are seeking a very specific kind of agreement.

The U.S. Ambassador to India - Harsh Shringla - released just yesterday (January 8, 2020) that the United States and India are in talks about an exclusive trade agreement. The agreement would grant business owners of both nations preferential market access.  Shringla, the now-former ambassador is set to take on his role as India's next foreign secretary later on this month. 

His comments state that there has been success in bridging the gap during the latest trade talks for new trade packages. The current conversations are setting a stage for a much bigger bilateral trade agreement.  

President Trump is seemingly for this trade agreement, having made a statement in September saying the U.S. was working on a trade agreement with India to increase economic ties.

This trade agreement negotiation comes shortly after the very public rift between the United States and the government of China - a nation we previously relied on heavily for imports and had long-standing trade agreements with. Speculation can be made that long-term the source of the United State's foreign imports may begin to shift. 

Though there have been some trade and investment issues historically hindering exactly this kind of relationship between the U.S. and India, the conversations around this new trade agreement seem to reiterate that the intention is to establish long-term trade relationships and solidify India as a major trade partner with the United States. As a business owner - especially if you work with international importing - this new relationship stands to affect your bottom line and your opportunities for foreign trade though any opinions on the coming relationship would be pure speculation. 

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