The United States is close to finalising a trade agreement with India, Secretary of State Marco Rubio said, adding that the negotiations are among the factors Washington considers while deciding on national security waivers related to sanctions.
Speaking to reporters in Samarkand, Uzbekistan, Rubio said the two countries were working to conclude the agreement. His remarks came ahead of his scheduled visit to India on Tuesday, during which he is expected to meet External Affairs Minister S. Jaishankar in Mumbai.
“We’re trying to finalize a trade deal with India right now. We’re very close to doing that,” Rubio said, explaining that the negotiations are considered when President Donald Trump makes decisions on national security waivers.
US Weighs Global Energy Concerns In Russia Sanctions Decision
Rubio also defended Washington’s decision to temporarily waive certain sanctions linked to Russian energy, citing global supply constraints and the economic impact of restrictions on other countries.
The US has issued sanctions waivers in recent months amid concerns over energy availability and rising prices, he said.
Trump had invoked national security considerations to defer several sanctions related to Russian energy under the Lindsey O. Graham Sanctioning Russia and Iran Act. The legislation would have authorised tariffs of up to 100% on the top five buyers of Russian crude oil or gas, including India.
However, the measures have only been deferred, leaving the US president with the option of invoking the law against the countries concerned at a later stage.
Asked whether Washington was now comfortable with countries continuing to purchase Russian energy, Rubio pointed to the pressure of high energy prices across the world.
“I know diesel prices are high in the United States, but they’re really, really high in a bunch of other countries around the world,” he said.
The secretary of state also highlighted geographical constraints that make it difficult for some countries to switch energy suppliers quickly.
“Geography is real. For some countries, it’s very difficult to acquire energy from alternative sources. That’s not an excuse, but all of that has to be balanced when you make foreign policy,” Rubio said.
Rubio Acknowledges Challenges In India’s Energy Diversification
Rubio’s comments came a day after he acknowledged that India had diversified its energy imports but could not immediately move away from Russian supplies.
He said New Delhi continued to obtain a substantial amount of its energy from Russia because shifting to alternative sources could not happen overnight.
The remarks suggest that Washington is weighing its broader strategic and economic considerations as it seeks to balance pressure on Russia with the energy requirements of countries that continue to rely on Russian supplies.
India-US Trade Deal Nears Legal Drafting Stage
Rubio’s comments come as both countries move closer to concluding the first tranche of their bilateral trade agreement.
Union Commerce and Industry Minister Piyush Goyal said last week that the first tranche had been finalised and was undergoing legal drafting.
“The US bilateral trade agreement’s first tranche has been finalised. It’s going through the final contours, the legal drafting, and we hope to be able to finalize that soon and operationalise it once we get a comparable or competitive advantage over our peer countries,” Goyal said.
The upcoming discussions between Rubio and Jaishankar are expected to take place against the backdrop of ongoing trade negotiations, energy security concerns and the wider US-India strategic partnership.
