Despite repeated assurances from US President Donald Trump that a deal is “close”, unresolved issues, particularly concerning agriculture and automobiles, are preventing a final agreement.

Trump said the bilateral trade pact with Indonesia would result in tariff- and non-tariff-barrier-free access for US goods to the Indonesian market

Preferential access could mean lower duties for Indian goods compared to those from countries like Vietnam. For instance, if Vietnamese goods face a 20% US tariff, Indian exports may be taxed less under the emerging arrangement.