India, US to Hold Ministerial Trade Talks This Week to Finalise Interim Bilateral Trade Agreement

Commerce Minister Piyush Goyal and USTR Jamieson Greer to discuss pending tariff issues as both countries work towards concluding the first phase of the BTA.

India and the United States are scheduled to hold ministerial-level trade discussions this week as negotiations continue on the first phase of the proposed Bilateral Trade Agreement (BTA).

Union Commerce and Industry Minister Piyush Goyal said US Trade Representative Jamieson Greer is expected to arrive in India for a two-day visit, during which he will hold discussions with the minister.

Commerce Secretary Rajesh Agrawal had recently stated that the meeting would focus on giving final touches to the framework agreement while advancing negotiations on the broader bilateral trade pact.

Focus on Interim Trade Agreement

Earlier this month, Piyush Goyal said India and the United States were working towards resolving all pending issues related to the interim trade agreement and expressed confidence that the first phase of the BTA could be concluded by the middle of next month.

On Saturday, Goyal reiterated that India would implement the proposed trade agreement only after securing a competitive advantage over competing nations, adding that tariff-related issues remain the final hurdle in the negotiations.

Speaking to the media, Goyal said the framework agreement has already been finalised, but implementation depends on resolving outstanding tariff concerns.

“We have finalised the framework agreement and announced it as well. The (US) Supreme Court’s order regarding tariffs came after that,” Mr Goyal said at a press conference at the BJP headquarters.

Explaining the pending issue, the minister added:

“We cannot implement the FTA until we secure a competitive advantage. The issue currently pending is that our duties need to be lower compared to those of competing nations; once this is settled, the trade agreement will be implemented.”

Tariff Deadline Approaches

The 10 per cent temporary tariff imposed by the US on all its trading partners is scheduled to expire on 24 July.

The temporary tariff, announced by the US administration in February, is levied over and above the Most Favoured Nation (MFN) duty rates. After the 150-day period ends, Washington is expected to introduce a revised tariff regime.

The upcoming ministerial meeting follows negotiations held in New Delhi between officials from both countries from 2 to 4 June to advance discussions on the proposed pact.

Negotiations Continue Amid USTR Investigation

The trade negotiations are also taking place while the Office of the US Trade Representative (USTR) continues its investigation under Section 301 of the US Trade Act of 1974 against several countries, including India.

The investigation covers issues related to excess industrial capacity and labour practices in global supply chains.