 "India and the US prepare to sign a crucial minerals pact, strengthening trade ties amid diplomatic tensions.")
India and the United States are set to sign a preliminary agreement to enhance cooperation on critical minerals during Indian Trade Minister Piyush Goyal’s visit to Washington this week. The pact aims to strengthen trade ties between the two nations, focusing on building supply chains and promoting collaboration in key minerals essential for clean energy, such as lithium and nickel. Goyal will meet with US officials, including Commerce Secretary Gina Raimondo and Trade Representative Katherine Tai, to discuss broader bilateral trade relations. With trade reaching nearly $120 billion in the 2023-24 fiscal year, both countries are optimistic about overcoming recent diplomatic challenges and fostering a more robust economic partnership.
India and the United States are set to enhance their trade relationship with the signing of a new agreement on critical minerals this week. Trade Minister Piyush Goyal is visiting Washington to finalize this initial pact, aimed at fostering cooperation in the vital sector of critical minerals. This agreement comes amid efforts to strengthen bilateral ties despite some recent diplomatic challenges.
During his visit, Goyal plans to meet key officials, including US Commerce Secretary Gina Raimondo and US Trade Representative Katherine Tai. This meeting is significant, especially after a recent one-on-one encounter between Indian Prime Minister Narendra Modi and US President Joe Biden in Delaware, along with discussions in the Quad grouping.
The new pact is expected to pave the way for building supply chains and enhancing collaboration between Indian and American businesses involved in critical minerals. This sector is increasingly important for clean energy initiatives, especially with India’s focus on securing materials like lithium and nickel.
India’s federal trade ministry has previously indicated its commitment to a separate critical minerals trade deal, similar to an existing agreement with Japan. This would involve avoiding tariffs to promote smoother trade in critical sectors.
In the fiscal year 2023-24, bilateral trade between India and the US reached a historic high of nearly $120 billion. The two countries have successfully resolved their trade disputes at the World Trade Organization under President Biden’s administration, marking a crucial step in their ongoing partnership.
This upcoming agreement represents a significant move for both nations as they strive to ensure secure supplies of essential minerals necessary for achieving zero-carbon goals.
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Last Updated: September 30, 2024 | 3:30 PM IST
Tags: India, US, trade agreement, critical minerals, Piyush Goyal, bilateral relations
What is the pact between India and the US about?
The pact is about cooperation on critical minerals, which are important for technology and green energy.
Why are critical minerals important?
They are used to make things like batteries, electronics, and renewable energy systems, which are essential for modern technology.
How will this agreement help India and the US?
It will strengthen trade ties, make supply chains more secure, and reduce dependency on other countries for these important resources.
What impact might this have on the environment?
The agreement aims to promote sustainable sourcing of minerals, which could help protect the environment while meeting technology needs.
When is this pact expected to be signed?
The exact date is not confirmed yet, but discussions are ongoing, and it is hoped to be finalized soon.
