India-US trade pact in last leg of legal drafting, says Piyush Goyal

Commerce and Industry Minister Piyush Goyal announced on Thursday that the initial phase of the India-US trade agreement is currently undergoing legal drafting. The minister expressed optimism that the pact would be finalized soon and implemented once India gains a competitive edge over its peer countries. The free trade pact between India and the EU is scheduled to be signed in December and take effect in February or March of the following year.

Earlier this month, US Trade Representative Jamie Scott Greer stated that both countries were working to finalize the deal, although an agreement was not imminent. The first tranche of the US bilateral trade agreement has been completed and is now in the final stages of legal drafting, according to Goyal. He made these remarks at the inauguration of the Centenary Conclave at Shri Ram College of Commerce.

Goyal emphasized that the US remains India's largest merchandise export destination in the current fiscal year's first half. Commerce Secretary Rajesh Agrawal reported that negotiations for the proposed India-US trade agreement are progressing well, with both nations striving to conclude the deal at the earliest opportunity. The agreement's success hinges on the US's completion of its tariff framework, which is also being addressed through Section 301 processes.

Agrawal highlighted that India seeks tariff stability and noted a decline in outstanding issues. The US investigation into excess capacity is another matter under consideration, with India supporting the US in addressing these concerns at the G20. Additionally, India joined 14 other nations, including the US, EU, and UK, in signing a joint ministerial statement aimed at curbing structural excess capacity and production, even as Indian manufacturing continues to face scrutiny from the US.