India and the United States are moving closer to finalising an interim bilateral trade agreement, with the first tranche of the deal expected to be executed by mid-July, Commerce and Industry Minister Piyush Goyal said on Friday.
Speaking a day after the two countries concluded another round of trade negotiations, Goyal stated that discussions were progressing rapidly and that both sides were working to resolve the remaining issues. He indicated that the first tranche of the bilateral trade agreement could be ready for implementation by the middle of next month and would provide India with preferential market access compared to competing nations.
The minister also revealed that he had met with the negotiating teams and expressed confidence that the initial phase of the agreement would be a significant step in strengthening trade ties between the two countries.
A high-level US delegation is expected to visit India towards the end of June, according to government officials. The delegation may be led by Jamieson Greer, the United States Trade Representative (USTR).
The anticipated trade agreement coincides with the expiry of the current 10% additional tariff imposed by the US, which is scheduled to lapse on 22nd July. Earlier this week, the Office of the USTR proposed an additional 12.5% tariff on imports from India and more than 50 other countries, citing concerns over the failure to prevent the import of goods produced using forced labour. A second report on the matter is also expected.
Government officials view the proposed measures as a negotiating tool aimed at bringing trading partners back to the bargaining table, particularly as the administration of US President Donald Trump has limited avenues for imposing fresh duties. The proposed tariffs under Section 301 are widely seen as a potential replacement for the current interim 10% tariff regime.
While the legal framework for the new tariff structure is being prepared, a final decision on any additional levy is expected to depend on the outcome of two ongoing USTR investigations. Hearings related to these investigations are scheduled for early next month.
With the framework now in place, both countries are focusing on finalising the operational details of the interim pact while continuing negotiations on a broader and more comprehensive bilateral trade agreement.
