India and the United States are likely to finalise and sign a joint statement on the first tranche of the bilateral trade agreement (BTA) in the next 4-5 days, informed Commerce and Industry Minister Piyush Goyal on Thursday.
A formal legal agreement on the trade deal is expected to be signed around mid-March, Goyal told mediapersons here, adding that after the joint statement is released, the US is expected to issue an executive order to reduce tariffs to 18 per cent.
Once an executive order is issued following the statement, the reduced 18 per cent US tariff on Indian goods will come into force.
“A more comprehensive and formal agreement is targeted for signing by mid-March,” Goyal said.
Providing technical clarity on the procedural aspects of the deal, Commerce Secretary Rajesh Agrawal explained the distinction between the two nations’ tariff structures.
“Their (US) tariffs are executive tariffs. Our tariffs are most-favoured-nation (MFN) tariffs. So, our MFN tariffs reduction can only take place after the legal agreement has been signed. That will only happen after the legal agreement has been signed,” Agrawal said.
Goyal further stated that India has already entered into a record eight trade agreements, and the first tranche of the BTA with the US will soon become the ninth. The FTAs signed by India under PM Narendra Modi will help in the thrust to modernise India, he added.
“The FTAs signed under PM Modi help us in our thrust to modernise India,” said the minister.
Meanwhile, Goyal announced in the Lok Sabha on Wednesday that the interests of India’s farmers have been protected in the India-US trade deal, as agricultural and dairy products have been kept outside the ambit of the deal.
The minister said that India has successfully protected sensitive sectors such as agriculture and dairy while giving full attention to food and farming concerns in the India-US trade agreement.
He said the partnership will create new opportunities for MSMEs, skilled workers, and industry; strengthen bilateral ties; and ensure energy security, which remains a top priority for 140 crore Indians.
The minister said the trade deal “will simplify the reach to advanced technologies and help in realising India’s ‘Make in India for the World’, ‘Design in India for the World’ and ‘Innovate in India for the World’.”