6 days ago
India-US Trade Pact Nearly Final, Signing Expected Soon
India and the United States are working on a new trade agreement.
India’s Commerce Secretary said the agreement is almost finished.
The countries still need to resolve a few issues.
The pact will give both countries better access to each other’s markets.
India uses standard MFN tariffs, which may make it easier to offer special terms.
The United States is creating a system for offering different tariff levels.
Officials have not announced the signing date yet.
Trade between the two countries continues to grow.
Commerce Secretary Rajesh Agarawal said the India-US trade pact is “more or less” finalised.
India and the United States are discussing a few remaining issues before signing the agreement.
Agarawal said the pact must provide preferential market access to both countries.
India’s MFN tariff system gives it greater flexibility to offer preferential access, he said.
The United States imposed an additional 10% duty on several countries, including India, effective July 24.
- Who
- India, the United States, Commerce Secretary Rajesh Agarawal, and Commerce Minister Piyush Goyal.
- What
- The countries are finalising a Bilateral Trade Agreement that is expected to be signed soon.
- Where
- The negotiations involve India and the United States.
- When
- The agreement was described as nearly finalised on Wednesday; a signing date was not specified. The additional 10% US duty took effect on July 24.
- Why
- The agreement is intended to provide preferential market access to both countries.
Key facts
- Agreement status
- The India-US trade pact is described as “more or less” finalised.
- Remaining work
- The two sides are discussing a few unresolved issues.
- Expected signing
- The agreement will be signed at an appropriate or opportune time, but no date was given.
- Trade framework
- The pact is referred to as a Bilateral Trade Agreement.
- India’s tariff system
- India operates on most-favoured-nation tariffs.
- US additional duty
- The United States imposed an additional 10% import duty on several countries, including India.
- Duty start date
- The additional duty came into effect on July 24.
Quotes
Rajesh Agarawal
India’s Commerce Secretary
“From the Indian side, because we are operating on MFN (most favoured nation) tariffs, it is easier to do so. From their (US) side, they are operating on executive tariffs. So, they are building an architecture, which will create those differentials and create a preferential market access. So, at an opportune time, we should be able to sign”
thehansindia.com
“My minister (Commerce Minister Piyush Goyal) on record has multiple times indicated that the deal has more or less been finalised. There are a few things which both sides are discussing, but it will be signed at an appropriate time”
thehansindia.com
Sources
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