Commerce and Industry Minister Piyush Goyal has said that the 1st tranche of the bilateral trade agreement (BTA) between India and the United States is likely to be operationalised by April 2026. With the joint statement already having been issued, India’s Commerce Ministry has said earlier this month had a formal agreement is being drafted, which may be signed by mid-March.
The Commerce Ministry had added that tariff reduction by the US will be undertaken via an Executive Order once the Joint Statement is signed, while India’s MFN tariffs can be reduced only once the legal agreement is signed. The signing of the agreement is likely to be done virtually, in the deal which doesn’t have any investment commitment on either side. The Ministry has indicated that enquiries are increasing by exporters for exports to the US, and Indian exporters are not missing entry into the summer supply chain.
The Minister said that India’s negotiators are expected to go to the US on 23rd February. A few days back, Commerce Ministry had said that India’s Chief Negotiator Darpan Jain is slated to visit the US on 23rd February to finalise the legal agreement for the 1st tranche of a BTA. India expects US tariffs to drop to 18% this week and will pursue the issue with the US in next week’s visit if the reduction isn’t effected by then.
On import of pulses and varieties of cotton, clarity on market access is expected in the legal agreement. US cotton worth $250 million is already being imported into India. The Ministry added that digital trade barriers are for both sides to decide and won’t be part of the 1st tranche of a BTA.
Stating that umports from the US are set to rise for data centres and energy as part of import diversification, the Ministry said that import basket is being diversified for precious metals from the UAE, to import more from the US. The Ministry clarified that any imports of select agri-products from the US will be subject to Tariff Rate Quotas (TRQs). India has a surplus of $1.3 billion in non-marine agri trade with the US.
(Edited by : Srabastee Biswas)
