India and US to sign trade deal next week: Goyal
What's the story
Union Commerce Minister Piyush Goyal has announced that India and the US will sign a joint statement on their bilateral trade deal in the next four to five days. The announcement aligns with US President Donald Trump's earlier promise of a significant tariff reduction for India. "The first tranche of the bilateral trade Agreement is almost ready," Goyal said, adding that a formal agreement would be signed around mid-March.
Lower tariffs
US to issue executive order reducing tariffs to 18%
Goyal also revealed that after the joint statement, the US will issue an executive order reducing tariffs to 18%. Commerce Secretary Rajesh Agrawal clarified that this joint statement needs to be converted into a legal agreement. He explained, "This legal agreement will give us the authority to reduce our tariffs... Their tariffs are executive tariffs. Our tariffs are MFN (Most-Favored Nation) tariffs."
Agreement significance
Legal agreement vital for implementing agreed tariff reductions
Agrawal emphasized the importance of this legal agreement, saying it is vital for implementing the agreed tariff reductions. He said, "Our MFN tariff reduction can only take effect after the legal agreement has been signed." This highlights how crucial these formalities are in making sure both countries stick to their commitments on trade tariffs.
Trade deal
About the India-US trade deal
The trade agreement will see the US reduce tariffs on Indian goods from 50% to 18%. In return, India has agreed to stop importing Russian oil and instead purchase more than $500 billion worth of US energy, technology, agricultural, and other products. India would also reduce tariffs and non-tariff barriers against the US to zero as part of their agreement.