With just days left before a critical August 1 deadline, the United States has called for more negotiations with India to finalize a trade agreement and potentially avert the imposition of higher tariffs of up to 26%.

Jamieson Greer, former U.S. Trade Representative, stated in a CNBC interview that while discussions with India remain constructive, further clarity is needed on how far the Indian government is willing to go in liberalizing market access. Greer emphasized that India’s historically protectionist stance means any serious reduction in trade barriers would require a significant policy shift.

“We continue to speak with our Indian counterparts, and they’ve expressed strong interest in opening portions of their market,” Greer said. “But we need some more negotiations to see how ambitious they want to be.”

His comments came shortly after Indian Commerce Minister Piyush Goyal expressed optimism that a trade deal could be reached in time, saying there were “no sticking points” in the current talks and that immigration issues, including H-1B visa rules, were not part of the discussion.

Greer noted that the Biden administration is focused on securing deals that substantially open foreign markets, suggesting that partial access may not satisfy U.S. expectations.

India’s consistent emphasis on protecting domestic industries, especially in sectors like agriculture and manufacturing, has historically made trade negotiations with Washington complex. However, the current urgency stems from the looming threat of retaliatory tariffs, which could affect bilateral trade worth billions.

With time running out, both sides are under pressure to reach an accord that balances U.S. demands for market access with India’s domestic economic sensitivities.