India team heads to US to seal text for interim trade deal days after announcement

INdia’s chief treater Darpan jainist testament see the US next hebdomad to finalise the legal text for an interim agreement in line with the February 7 joint statement of the two countries, commerce secretary Rajesh Agrawal said on Monday, adding that Washington is expected to reduce the 25% reciprocal tariff on Indian merchandise exports to 18% soon, perhaps as early as this week.“The joint statement pertains to the framework agreement that was reached between India and the US… The joint statement lays down the contours of the deal. Now the contour of the deal has to be translated into a legal agreement, which will be signed between the two sides. So, both sides are engaged in finalising that legal agreement, as I speak,” he added.The commerce secretary said both parties are currently discussing the issue and that “next week, the chief negotiator Darpan Jain will be leading a delegation to the US” to finalise the legal text. The target is to see that “we can finalise, close and sign the legal agreement by March”, he added, declining to give any specific deadline for signing the agreement as both sides need to resolve several legal issues to complete the text.Agrawal said that the 25% tariff imposed on Indian merchandise from August 27, as a punitive levy for India's purchase of Russian crude oil, has “already gone”. On the move to reduce the other 25% reciprocal tariff to 18%, he said, “I’m told they are processing it. It should be done fast. Our expectation is, it should be done this week, but in case it is not done, the team is there next week, and we can see why it is taking time.”Agrawal explained that there are products for which reciprocal tariffs could be set to zero, but that this will be effective only after the legal agreement is signed. “And from our side also, any reduction in tariff, any market access, preferential market taxes, will be [executed] only after the legal agreement is signed,” he said.India and the US moved closer to an interim trade deal on February 7, releasing a joint statement that confirmed that US tariffs on Indian goods were being reduced to 18% from 50% and detailed a framework committing both countries to zero duties on select products, market opening measures and overall deeper economic ties — a breakthrough almost a year in the making. On that day, India’s commerce minister Piyush Goyal called it a “historic” framework and a “very fair, equitable and balanced agreement.” “Massive potential will be opened up for Indian exports in the world’s largest economy, the $30 trillion market, providing opportunities for our MSMEs, our farmers, our fishermen, our youth, our women, and the very talented and skilled people of India,” he said while addressing a press conference on February 7.