India-US negotiations on trade deal progressing well, framework deal is ready: Commerce Secretary

The negotiations between India and the US on the proposed trade agreement are progressing very well and the framework deal is ready, Commerce Secretary Rajesh Agarwal said on Monday, adding that it will be signed at the right time.

Addressing reporters at the monthly trade briefing, Agarwal noted that he does not see any challenges on the trade deal with the US but declined to give a timeline for the signing of the deal.

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While an Indian delegation had visited the US in May, more recently, USTR Jamieson Greer also visited India and held meetings with Commerce and Industry Minister Piyush Goyal on June 23 and 24, the commerce secretary noted, pointing out that both countries remain engaged in bilateral talks.

He noted that bilateral trade has been growing positively and India is importing more energy from the US as part of efforts to diversify energy supplies.

The Commerce Secretary further noted that the preferential market is an important part of the trade deal and is being structured as part of the negotiations.

Meanwhile, on the ongoing Section 301 investigations by the US on nearly 60 countries over forced labour and excess capacity, he noted that the one on excess capacity is at an advanced stage. “We expect the final investigation report to be out this month,” Agarwal said.

The draft report on the investigation into excess capacity is still awaited, and once it is out, it will take at least four to six weeks for it to be identified. 

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Agarwal said that India is engaged with the US and is trying to address these issues as well. “Whenever we get into a trade relationship, we will navigate these issues also,” he said, adding that the deal would ensure that future tariff-related challenges can be managed through an agreed framework. “Any trade deal will address all aspects of a relationship and provide a pathway on all issues,” he said.

Meanwhile, India also seems to be awaiting clarity on what happens when the 10% tariffs imposed by the US expire on July 24. “The decision lies with the US government. There are already MFN tariffs,” Agarwal noted.