The US has accused India of deliberately undermining trade negotiations as it tries to gain access to its biggest source of foreign investment: the country’s northern and western provinces.
India has made it clear it wants to sign a free-trade deal with the US, but Washington has insisted that the deal needs to cover all its sectors, not just agriculture.
The two countries have fought a trade war since last year when US President Donald Trump accused India and other countries of trying to destabilize the global economy by trying to restrict access to the US market through a dispute over tariffs.
Both sides have accused each other of trying and failed to resolve the dispute.
On Monday, Indian officials said they were reviewing their current position on a free trade agreement with the United States, but it was unclear whether India would agree to any extension of the current bilateral trade deal.
Indian officials also said they could not guarantee that they would be able to continue to operate under a new trade agreement if it were to be signed, according to a statement issued by India’s trade and industry ministry.
The statement also said India was still working on its own proposals for a free Trade Agreement, and that its trade relations with the rest of the world would be evaluated.
The trade war between the two countries began when Trump accused the country of blocking a $60 billion trade agreement between the United Kingdom and India.
India responded by accusing Trump of trying “to sabotage” bilateral trade deals.
In an interview with The Wall St. Journal on Monday, Trump said the US was seeking to renegotiate the $60-billion trade deal with India, which was signed in 2018.
Trump had accused India’s government of trying so hard to stop the deal, even as the two sides have continued to negotiate and sign trade deals, including a $400-billion deal between India and the European Union.
India says the deal has been beneficial for the United State.
It also has sought to renegotiated the same trade deal, but Trump has blocked it, saying it does not have sufficient protection for American workers.
India is the world’s biggest importer of US products, and a top US official said on Monday that India is “a major beneficiary” of the $1 trillion trade deal between the US and India, but said it could not be guaranteed that it would remain in force for all of its sectors.
“We want a free and fair trade agreement,” US Commerce Secretary Wilbur Ross said.
“We are negotiating with the government of India to see what the future holds.”
The US is seeking to conclude a new $200-billion bilateral trade agreement before the end of this year, with the goal of concluding a free or fair trade deal in 2019.
A separate trade agreement, known as the Comprehensive Economic Partnership, was also signed last year between the U.S. and China.
The US and China have been negotiating the future of a trade deal since the early 1990s, but the U,S.
trade deficit with China has more than doubled since the 1990s.