India-US Trade Pact Near Completion

The proposed India-US trade pact is largely finalized, with only a few issues still under discussion, according to Commerce Secretary Rajesh Agrawal. The agreement will be signed at an appropriate time after both sides complete the remaining negotiations.

Agrawal stated that every trade agreement must provide some form of preferential market access to the participating countries. India currently operates under most favoured nation tariffs, making it comparatively easier to offer concessions. However, the US relies on executive tariffs and is developing an architecture to establish tariff differentials and extend preferential access to India.

Commerce Minister Piyush Goyal has said that details of the Bilateral Trade Agreement will be announced once Washington offers India more favourable terms than its competitors. The US imposed an additional 10% import duty on several countries, including India, from July 24 under a Section 301 investigation concerning forced labour.

Despite the ongoing negotiations, bilateral trade between India and the US continues to grow. India's merchandise exports to the US rose 3% to $34.5 billion during April-July FY27. Imports from the US increased 22.42% to $22.12 billion over the same period.

The framework for the pact's first phase was announced in February, but subsequent changes to the American tariff regime prompted further negotiations. Goyal is scheduled to visit the US later in September for the G20 Trade Ministerial in Milwaukee, where he will also hold bilateral discussions with US Trade Representative Jamieson Greer.

In addition to the India-US trade pact, India is also negotiating other trade agreements. The India-Chile Comprehensive Economic Partnership Agreement is in its final stages, with both sides hoping to overcome the remaining differences within two to three months. The India-New Zealand free trade agreement, signed on April 27, is expected to take effect in October.

The completion of the India-US trade pact is significant for both countries, as it will provide a framework for increased trade and investment. The agreement is expected to boost economic growth and create new opportunities for businesses in both countries.

The growth of bilateral trade between India and the US is a positive sign for the economy, and the completion of the trade pact is expected to further accelerate this growth. With the US being one of India's largest trading partners, the agreement is crucial for India's economic development.

In conclusion, the India-US trade pact is nearing completion, with only a few issues remaining to be resolved. The agreement is expected to have a significant impact on the economies of both countries, and its completion is eagerly awaited by businesses and investors.