Only minor details of the interim trade agreement with the US are left to be decided as the text for the deal is being finalised, Commerce and Industry Minister Piyush Goyal said on Monday.
“In February, the leaders of the two countries announced the framework agreement. Most things have been decided. As you know, the US ambassador Sergio Gor, has just said that 99% of the things have been decided,” he told reporters.
To take the discussions forward, a US delegation has arrived in New Delhi for three day talks beginning Tuesday. It will be the second in-person meeting between the two sides to finalise the text of the interim deal after the framework was agreed.
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Seeking Tariff Advantages
Sources, however, said New Delhi is likely to persist with its demand for competitive US tariffs compared with its competitors. In this context, the possible US action under Section 301 will also be discussed at the meetings over the next three days. “Without competitive rates versus our direct competitors, we are not interested in any deal,” a source said. “We want to have an advantage over our competitors—the developing countries, Southeast Asia, Bangladesh, Pakistan, Sri Lanka,” the person added.
Goyal said: “I am confident that we will be able to conclude the first tranche of the bilateral trade agreement with the US as soon as possible, sign it and start further discussion on how to have a comprehensive Bilateral Trade Agreement (BTA).”
Under the framework it was agreed to bring down additional tariffs on India to 18% from 50% with India agreeing to zero duty industrial products from the US and expressing an intention to buy $ 500 billion worth of goods in the next five years.
Section 301 Probes
However, before the framework could be converted into a formal agreement, the US Supreme Court invalidated the country-specific reciprocal tariffs, which was the starting point of all trade deals that the US had foisted on its trade partners.
After the US Supreme Court verdict, the US had imposed 10% additional tariffs on all trade partners from February 24 under Section 122 of the Trade Act.These tariffs can only be imposed for 150 days and these are expected to expire on July 24.
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The US has also opened two investigations under Section 301 of the Trade Act – one on extra capacities and the other on the use of faced labour. Post investigation, the US can impose additional duties on the countries being probed. Since there is no clarity on Section 301 tariffs any comment on the rates at which the deal can be struck is not possible, sources said.
Once clarity emerges on Section 301 tariffs, US Trade Representative Jamieson Greer would visit India for the signing of the interim deal.
TOPICSIndia-US trade dealThis article was first uploaded on June one, twenty twenty-six, at twenty-six minutes past seven in the evening. © The Indian Express (P) Ltd