US trade deal finalised, legal drafting on: Piyush Goyal

NEW DELHI: Commerce and industry minister Piyush Goyal disclosed on Thursday that the US bilateral trade agreement's first tranche has been finalized and is currently undergoing legal drafting. Goyal stated that the goal is to finalize and operationalize the agreement once comparable or competitive advantages over peer countries are secured.

He claimed his remarks on the US-India pact are consistent throughout his time in office. US Ambassador to India Sergio Gor confirmed that negotiations for the bilateral trade deal are proceeding at an "incredible pace" and that the "big items are done." The US Trade Representative (USTR) Jamie Pressly Greer and Goyal are reportedly discussing the proposed deal down to finer details.

This development comes after US Trade Representative Jaimeson Greer previously stated that the trade deal was not imminent, and days later, Finance Minister Nirmala Sitharaman said that both sides appeared to have reached a plateau with little room for further concessions. External Affairs Minister S Jaishankar also mentioned that India and the US are nearing a landing point on the trade deal.

The talks have been ongoing since the US Supreme Court dismissed reciprocal tariffs imposed by former President Donald Trump, which led to the suspension of the earlier agreement. A deal can only be finalized after the USTR unveils its next set of steps following the imposition of 10-12.5% tariffs on over 50 countries for using forced labor.

A second probe on structural excess capacity is pending, along with a new law that empowers the US president to levy up to 100% tariffs on countries importing oil from Russia and Iran. Commerce Secretary Rajesh Agrawal asserted that all other issues will be settled as part of the deal while emphasizing India's need to maintain an edge over rivals such as ASEAN nations, China, and Bangladesh.