US trade pact will be signed when time is right: Commerce Secretary

Fully engaged with Washington for a balanced deal, says Piyush Goyal

The proposed trade deal between India and the United States (US) will be signed when the time is right, Commerce Secretary Rajesh Agrawal said on Monday. “The framework deal is ready and it will be signed when the time is right,” Agrawal told reporters at a press briefing.

 

Separately, Commerce and Industry Minister Piyush Goyal also said that India and the US negotiating teams remained fully engaged in working towards a balanced, commercially meaningful trade agreement.

 

“I had fantastic meetings with USTR Jamieson Greer when he visited Delhi in June. Both sides 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,” Goyal posted on X.

 

 

India is waiting for assurance from the US on comparative advantage over other economies under the deal, the commerce secretary Agrawal said. “Whenever that is ready, we will sign,” he added.

 

The trade deal will also address India’s concerns over the US’ Section 301 investigations against India once the two sides sign the deal, Agrawal indicated.

 

“Whenever we get into a trade agreement, they will address and provide a pathway to navigate along these other conversations also. I think both sides will find innovative ways to address all aspects of trade relations,” he said.

 

The Office of the US Trade Representative (USTR) has initiated two investigations against India, alleging forced labour and excess capacity, under Section 301 of the US Trade Act of 1974, which allows Washington to investigate and act against trade practices it considers harmful to US commerce.

 

Last month, the USTR proposed a 12.5 per cent tariff on Indian imports following a Section 301 investigation into alleged forced-labour links. Public comments on the proposed action closed on July 6, and the final investigation report is awaited.

 

“As of now, there are two investigations underway; one is at an advanced stage. India has made its submissions,” Agrawal said. “The draft investigation report was out sometime last month, and we expect the final investigation report to be out this month,” he added.

 

“Under the other investigation, the draft report is not yet out. Once the draft report comes, it will take at least four to six weeks for the final outcome,” Agrawal said. “These investigations are on, and we are closely watching the outcome.”

 

Meanwhile, the 10 per cent blanket tariff imposed by the White House on all trading partners is set to lapse on July 24. Washington imposed the duty after the US Supreme Court scrapped the reciprocal tariffs imposed under the International Emergency Economic Powers Act.

 

Clarity on the US tariff structure after July 24 is yet to emerge. “I think that is entirely in the domain of the government of the United States,” Agrawal said when asked about the tariff structure from July 25 onwards.