India and the U.S. have completed most of the negotiations on the proposed bilateral trade agreement and are now working on final adjustments to the pact, Indian Commerce and Industry Minister Piyush Goyal said on Monday.
“We have concluded most of the discussions and are fine-tuning the agreement,” he said in The Hague while commenting on the proposed India-U.S. trade pact. The minister is visiting the Netherlands as part of an official trip accompanied by a business delegation.
Addressing the India-Netherlands Business Forum, Commerce and Industry Minister Piyush Goyal said India has signed nine free trade agreements over the past four and a half years, PTI reported.
India and the United States announced on February 7 that they had finalized the framework for the first phase of their proposed bilateral trade agreement (BTA). However, changes in U.S. tariff policies have prompted further negotiations between the two countries.
Under the framework announced in February, the U.S. reduced tariffs on Indian goods to 18% from 50%, Goyal had said. According to the joint statement, tariffs on generic pharmaceuticals, gems and diamonds, and aircraft parts are set to be reduced to zero once the interim agreement is finalized.
In return, India has agreed to eliminate or lower tariffs on all U.S. industrial goods and a broad range of American food and agricultural products, including dried distillers’ grains, tree nuts and fruit. Goyal had previously stated that the interim agreement safeguards the interests of Indian farmers.
The proposed framework also addresses non-tariff trade barriers. India has agreed to resolve issues affecting U.S. medical device exports and ease import licensing requirements for U.S. information and communication technology products.
According to PTI, the legal text of the agreement was initially expected to be finalized by mid-March. Negotiations have continued following the U.S. Supreme Court’s ruling on tariffs. The joint statement provides flexibility for either country to revise its commitments if the other alters the agreed tariff structure.
Goyal also met U.S. Trade Representative Jamieson Greer on the sidelines of the G20 Trade Ministerial in Milwaukee on October 1, describing the discussions as ‘productive.’
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