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🇮🇳 India /Economy & Trade

India-US trade pact first phase likely by mid-July, minister says

From Hindustan Times · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Ongoing story
  • India and the United States are nearing the finalization of the first phase of a bilateral trade agreement, expected by mid-July.
  • Union Commerce Minister Piyush Goyal expressed optimism about closing "open ends" in the talks.
  • The agreement aims to provide India preferential access over competitors in the U.S. market.

India and the United States are on track to implement the initial phase of a bilateral trade agreement by mid-July, according to Union Commerce Minister Piyush Goyal. The announcement follows recent talks in New Delhi between Indian and American trade negotiating teams.

Goyal expressed confidence that outstanding issues are being resolved, stating, "We are fast moving towards closing all the open ends, and I think sometime by the middle of next month or so, we should be in a position to execute a very, very vibrant first tranche of the bilateral trade agreement." He added that this initial phase would grant India preferential access to the U.S. market.

The three-day negotiations, held from June 2-4, were led by Assistant U.S. Trade Representative Brendan Lynch and Indian Additional Secretary Darpan Jain. The visit occurred shortly after U.S. Ambassador Sergio Gor indicated that only a small portion of the proposed trade deal remained to be finalized.

We are fast moving towards closing all the open ends, and I think sometime by the middle of next month or so, we should be in a position to execute a very, very vibrant first tranche of the bilateral trade agreement.

— Piyush GoyalExpressing optimism about the imminent finalization of the first phase of the trade deal.

However, the talks face a new complication. On June 2, the U.S. Trade Representative's Office proposed an additional duty of 12.5% on goods from 54 countries, including India, as part of a forced labor investigation. Notably, competitors Pakistan and Indonesia face a lower proposed rate of 10%, potentially disadvantaging Indian textiles, leather, seafood, and agricultural products.

Despite this challenge, sources familiar with the discussions indicated that talks have progressed well, with an interim agreement anticipated soon. Both sides have described the discussions as "positive and constructive," with the U.S. reportedly committed to advancing the trade agreement.

It is only the first tranche of our bilateral trade agreement, which will give preferential access to India over our competitors.

— Piyush GoyalExplaining the significance of the initial phase of the agreement.
DistantNews Editorial

Originally published by Hindustan Times in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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