The trade agreement between India and the US could be finalised before July 24 when the uniform 10% additional global tariffs applied by the US expire, Commerce Secretary Rajesh Agrawal said.
He said talks with the US are happening continuously and efforts are on to finalise the deal as soon as possible.
The tariff regime has also changed. At present there is a uniform tariff that will go on till July 24. I feel before that it will be done,” he said at a CNBC-Awaz event.
The US had imposed 10% additional tariffs on all trade partners from February 24 under Section 122 of the Trade Act of 1974 after the US Supreme Court struck down the reciprocal tariffs on all countries.These tariffs can only be imposed for 150 days.
The US Supreme Court Judgement also delayed the trade agreement with India as the framework that was agreed on the basis of the 25% reciprocal tariffs and 25% penal tariffs for buying Russian oil no longer existed, India is now seeking a deal that provides it tariff advantage against its competitors.
While Section 122 tariffs may go, the US has also launched a probe against its key trade partners under Section 301 of the Trade Act to determine whether subsidy-fueled overcapacities and use of forced labour has hurt the competitiveness of American industry. Under Section 301 there is no limit on the extent of additional tariffs that the US can impose.
To further the discussions on the trade agreement, an Indian team of officials had visited the US last month. Next month a team led by US Trade Representative Jamieson Greer is expected to come to India to take the negotiations forward, US Secretary of State Marco Rubio had said on Sunday.
Agrawal also confirmed that the Comprehensive Economic Partnership Agreement (CEPA) with Oman will come into force from June 1. The agreement between both sides was signed on December 18 last year.
He said that the FTA with New Zealand that was signed in April is expected to come into force in October-November. The legal scrubbing and finalisation of the FTA with the European Union is in progress and it will be expected to be signed before the end of 2026, Agarwal said, adding that the agreement will become operational before the end of this financial year in March 2027.
TOPICSIndia-USIndia-US trade dealThis article was first uploaded on May twenty-six, twenty twenty-six, at forty-five minutes past five in the evening.