India is racing to lock in a trade deal with the U.S. that would give it better terms than its Asian rivals, and it's bringing in the top U.S. trade diplomat to get it done.

U.S. Trade Representative Jamieson Greer is scheduled to visit India on Tuesday for a two-day discussion aimed at finalizing a crucial trade agreement, according to Reuters. The visit comes on the heels of a meeting between India's Prime Minister Narendra Modi and President Donald Trump on June 17, on the sidelines of the G-7 summit — their first face-to-face in over a year.

India is particularly keen on securing a tariff advantage over other Asian nations, including ASEAN members like Vietnam. India's Trade Minister Piyush Goyal has made no secret of the country's ambition. "The faster, the better," Goyal said, expressing hope that the deal could be wrapped up before July 24, when Washington's temporary 10% tariff on trading partners is set to expire. Goyal also stressed the need for assurances that no new tariffs would be imposed after the deal is signed.

Greer's office told Reuters that the goal of the talks is to establish "fair, balanced, and reciprocal trade."

Legal and Diplomatic Hurdles Persist

The upcoming talks build on an interim trade agreement announced by Trump in early February, which aimed to lower tariffs between the U.S. and India. That proposed deal set 18% tariffs on Indian goods, giving India an edge over competitors like Vietnam and Bangladesh.

But the path to a final deal hit a snag when the Supreme Court ruled Trump's sweeping International Emergency Economic Powers Act (IEEPA) tariffs unlawful later that month. Trump responded by immediately announcing a new 10% global tariff after the unfavorable ruling.

In June, as part of an investigation under Section 301 into unfair trade practices, the Trump administration proposed additional tariffs on imports from 60 economies, including India, citing their failure to address trade in goods produced with forced labor.

Diplomatic tensions have also risen following the deaths of three Indian sailors in U.S. Navy attacks on commercial vessels in the Gulf, adding another layer of uncertainty to the trade negotiations.

In March, U.S. Deputy Secretary of State Christopher Landau emphasized the importance of a balanced and mutual trade agreement with India, stating that the U.S. would not repeat the mistakes made with China. Landau expressed optimism about the ongoing discussions, indicating that a bilateral trade agreement was close to the "finish line."