As U.S. Trade Representative Jamieson Greer gears up for India visit June 23-24, officials say an interim trade deal is nearly done. But Commerce Minister Piyush Goyal insists it hinges on U.S. finalizing its tariff structure. Crucial for India to keep competitive edge.
At recent briefing,Goyal stressed FTA can't proceed until India gets lower duties than global competitors. “We cannot implement the FTA until we secure a competitive advantage,” he said,highlighting tariff talks' importance in ongoing discussions.
Greer heads to Delhi after Assistant USTR Brendan Lynch visited June 1-4. Senior Commerce Ministry official confirmed Goyal and Greer will work on finalizing trade deal framework,first agreed in February.
Framework suggested 18% tariff on Indian imports,giving New Delhi edge over others. But U.S. Supreme Court tossed out reciprocal tariffs from ex-President Donald Trump,delaying agreement.
Despite hurdles,a second government official said: “Several issues and details have been settled. The U.S. seems serious about finalizing an agreement.” Optimism about deal rising .
In March,U.S . Trade Representative's office started Section 301 investigation under U.S. Trade Act of 1974,looking into whether partners like India were tackling forced labor-made goods. Another layer of complexity.
In June,USTR proposed 12.5% tariff on 54 countries,including India,for not enforcing forced labor bans. Final hearing set for July 7. Commerce Ministry says India submitted responses,stating trade deal will cover all trade aspects.
U.S. tariffs likely to stick around in some form,but official confident trade deal will still give India edge. “The government believes U.S. will continue to offer preferential treatment to countries with a trade agreement over those without,” official noted.
As interim deal deadline nears,focus is on how U.S. will handle tariffs while juggling international trade complexities. Outcome of Greer-Goyal talks could heavily influence U.S.-India trade future…
