USAupdated 1h ago2 min read
India And United States Clear First Trade Deal Phase, Move Into Legal Drafting
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First phase of the India-US trade deal finalized; legal drafting underway. Major issues resolved; remaining details to finalize the comprehensive agreement.
10 outlets told this the same way.
First Tranche Cleared
India and the United States cleared the first phase of their bilateral trade agreement, and Commerce and Industry Minister Piyush Goyal said the pact is moving into legal drafting. Goyal told the SRCC Centenary Conclave in Delhi that the initial tranche has been settled and that the two governments are working through final details before it can be signed and implemented. Commerce Secretary Rajesh Agrawal said the negotiations are progressing constructively and that the timing of signing depends partly on the United States formalising its broader tariff structure.
External Affairs Minister S Jaishankar said the negotiations are moving toward a "landing point," while he acknowledged that "That part of it is not entirely clear because not everybody has worked out a deal." US Ambassador to India Sergio Gor said the two nations have cleared the major items on their trade deal checklist and described the pace as "incredible."
Rubio Visit and Sanctions
Sergio Gor said the negotiations are at an "incredible pace" and that "big items are done," while he declined to provide a date or identify remaining sticking points. Gor said the legislation passed by US Congress gives Trump authority to impose tariffs of as much as 100 percent on countries purchasing Russian oil and gas, including India. Gor said Trump is expected to decide on the matter within the next 10 days, and he stressed that the provisions are not aimed at any particular country.
The US Secretary of State Marco Rubio is scheduled to visit India soon, with stops planned in Mumbai and Jamnagar, as the visit is expected to place emphasis on trade, investment and commercial cooperation. External Affairs Minister S Jaishankar said the negotiations are heading towards a "landing point," and he said the core fundamentals of the bilateral strategic partnership remain unchanged.
What Comes Next
Commerce and Industry Minister Piyush Goyal said the first phase is settled and that legal drafting is underway, while he also said the two governments are working through final details before signing and implementation. Gor said the goal is to end the war in Ukraine rather than punish any country, and he described the sanctions options as "three different buckets; one is oil, the second is gas, the third is sanctions evasion." Ajay Srivastava of the Global Trade Research Initiative said the United States could still use the threat of duties to press New Delhi into an unequal trade.
“The US Supreme Court then ruled that the tariffs were unconstitutional.”
Goyal announced that the India-European Union free trade agreement is expected to be signed in December and come into force in February or March next year. Gor said the US Supreme Court ruled the tariffs were unconstitutional, and he said the administration had to go back and rework some of those things.