India-US discuss interim trade deal

NEW DELHI: Commerce and Industry Minister Piyush Goyal and US Trade Representative Jamieson Greer engaged in a “constructive conversation” regarding progress on an interim trade agreement between India and the United States.

Goyal met Greer on the sidelines of the G20 Trade Ministers’ Meeting held in Milwaukee. In a post on X, Goyal wrote, “Met USTR Jamieson Greer on the sidelines of the G20 Trade Ministers’ Meeting in Milwaukee. Had a productive discussion with USTR Greer towards the early conclusion of a mutually beneficial interim agreement under the India-US Bilateral Trade Agreement. We also exchanged views on G20 deliberations under US Chairship.”

The two officials also discussed the G20 trade deliberations taking place under the leadership of the US. The meeting took place as India and the US aim to finalise the initial stage of a broader trade deal following months of discussions.

On February 7, the two countries announced a framework for a temporary trade accord. The framework addressed tariffs, market access, and various other trade-related matters.

Its purpose was to facilitate a broader Bilateral Trade Agreement between the two countries. However, the agreement has not yet been officially finalised.

Changes in US tariff policy have prompted additional discussions between the two sides. India aims to enhance market access for its exporters in the US and wants the final agreement to provide Indian firms with a competitive edge in the American market.

Last week, Goyal stated that the agreement was “settled and complete” from India’s perspective. He also said that India sought to ensure its exporters had an adequate competitive edge before the agreement took effect.

Meanwhile, External Affairs Minister S Jaishankar stated last week that India and the US had reached “more or less an understanding” regarding the trade agreement.

Jaishankar further noted that the discussions were “extremely, extremely progressed.” However, he indicated that the ongoing US Section 301 tariff process could influence the timing of the agreement.

Under the February agreement, both countries agreed to work together to reduce trade barriers and improve market access. The US proposed an 18 per cent reciprocal tariff on selected Indian products under the framework.

The two sides also discussed removing reciprocal tariffs on certain items, including generic medicines, diamonds and gems, and aircraft components, pending the completion of the interim agreement. The framework also addressed issues such as rules of origin, non-tariff barriers, and digital commerce.