India-US interim trade pact may be rolled out in April: Piyush Goyal

A USTR delegation is expected to visit New Delhi in late March to sign the interim India-US trade deal, as negotiators meet in Washington to finalise the legal text ahead of April rollout

The interim trade agreement between India and the United States (US) is expected to be operationalised in April, Commerce and Industry Minister Piyush Goyal said on Friday.

 

A delegation led by USTR Jamieson Greer may visit New Delhi around March-end to sign the interim trade deal, which has been finalised by both countries.

 

People aware of the matter said that while the details and the schedule of the visit are still being finalised, a team of officials headed by the chief negotiator of the India-US trade deal, Darpan Jain, is headed to Washington on Sunday to discuss and finalise the legal text of the deal. 

 

 

The three-day meeting between the two negotiators will begin on February 23.

 

India and the US issued a joint statement on February 7 outlining the contours of an interim trade agreement. As a first step, the US removed the 25 per cent punitive tariffs imposed on India “in recognition of India’s commitment to stop purchasing Russian Federation oil”. A further reduction in tariffs from the existing 25 per cent to 18 per cent is expected to take place soon — this month, Goyal said.

 

India has protected all sensitive sectors, including agriculture, under the interim trade agreement. “Once that rate (50 per cent tariff) comes down to lower than that of any of our competitors, we will be below any other emerging market or developing economy, and, having safeguarded all sensitive sectors, it is a great win-win solution for both countries,” the minister said.

 

Labour-intensive sectors such as apparel, leather and marine products were suffering from high tariffs. He also criticised Congress leader Rahul Gandhi for raising concerns about the deal. Gandhi had questioned why the government agreed to increase US imports by $100 billion a year without a reciprocal commitment.

 

“I think he lives in a world detached from reality. Were you happy with the 50 per cent tariff? Was your business prospering? Were your jobs safe? Was Tirupur able to export apparel? What is happening to your leather industry, where lakhs of workers are employed? What had happened to our marine seafood exports?” he said, adding that businesses will benefit from the negotiated 18 per cent rate under the trade pact with the US. The deal will also help boost exports of gems and jewellery and spices.