The Union Commerce Minister Piyush Goyal on Thursday said that India and the US will issue a joint statement regarding the bilateral trade agreement in the next four to five days. The formal agreement with all the legalities will be out by mid-March. Once the trade deal is signed, Washington will come out with an executive order lowering the tariff to 18 per cent.
Calling the trade deal a 'milestone', the Union Commerce Minister said that India and America have already entered into a record eight trade agreements. The upcoming document will be the first tranche of the BTA, and the US will become the ninth. The trade deal is expected to ease business activities, which have been directly impacted by the tariffs.
India To Sign FTA With GCC
The Union Commerce Minister, Piyush Goyal, also announced that India is signing a free trade deal with the Gulf Cooperation Council (GCC), which comprises six countries, including Saudi Arabia and the United Arab Emirates. The discussions between the stakeholders have been going on for nearly two decades. Currently, the bilateral trade with GCC stands at USD 179 billion.
The trade deal will improve policy predictability, encourage investments and strengthen food and energy security. He added that select sectors, such as food processing and petrochemicals, will benefit directly from the trade deal.
Earlier, the American President Donald Trump announced a trade deal with India following a phone call with Prime Minister Narendra Modi. During the phone call, Trump said that the reciprocal tariffs on Indian imports will be slashed from 25 per cent to 18 per cent, while India would eliminate tariffs and non-tariff barriers on US products. He also claimed New Delhi had agreed to end purchases of Russian oil.
Subsequently, the Union Commerce Minister Piyush Goyal told the Parliament during the ongoing budget session that India and the United States have been holding regular and intensive discussions to finalise a balanced, mutually beneficial bilateral trade agreement.