India’s framework trade deal with the United States is ready and will be signed at the right time, a senior official said Monday. Both sides would find innovative ways to ensure that no new tariffs are announced under any other mechanism, the official said.
The comments come as the US finalises the additional tariffs based on the probe into forced labour inputs in exported products under Section 301 of the Trade Act. New Delhi has picked holes in the US probe in this regard. The US is conducting Section 301 probe into policies of its other trade partners that enable excess capacities and undermine American business. These investigations are running parallel to trade negotiations the US is having with different countries.
“Trade deals are about comparative advantages and that is an integral part of the deal that we are finalising. Whenever you do a trade deal, it should not happen that new tariffs come in,” the official said, adding that he sees no challenge around the agreement.
To finalise the deal based on the Joint Statement of February, discussions are being held at the highest levels. US Trade Representative Jamieson Greer visited India from June 22-24 to further the talks on the agreement.
The discussions aimed on pathways to conclude an interim agreement as an important milestone toward a comprehensive Bilateral Trade Agreement (BTA). They also focused on the core elements of BTA like enhanced market access, digital trade, supply chain resilience, reduction of non-tariff barriers, and expanded cooperation in strategic sectors.
“Both sides (during Greer’s visit) reaffirmed their commitment to an agreement that is balanced, commercially meaningful, and delivers tangible benefits for businesses, farmers, workers, and consumers in both countries. Our teams remain fully engaged in achieving this objective,” Commerce and Industry Minister Piyush Goyal said in a social media post.
“We don’t see any dissension, we don’t see any challenge around it (the trade deal).
“We feel we are on a very positive deal, the trade has been going well. India has also been increasing its imports, including energy imports from the US, and that is also a positive thing,” Commerce Secretary Rakesh Agrawal said.
The forced labour report of the USTR under Section 301 has recommended 12.5% additional duties on India and the consultation process is on in the US on the final outcome. The Section 301 report on excess capacities is still awaited.
“So we understand that once the draft report comes, it will take 4 to 6 months minimum or maybe more, to complete the final outcome of that. So these investigations are going on,” Agrawal said. “I think the trade deal, whenever we sign it, all aspects of the trade relation will get addressed,” he added.