India and US issue joint statement announcing framework for an Interim Trade Agreement
RNE Network.
IIndia and US today announced that they have reached a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade.
Commerce and Industry Ministry shared the India-US Joint Statement, which said that the framework reaffirms the countries’ commitment to the broader U.S.-India Bilateral Trade Agreement (BTA) negotiations, launched by Prime Minister Narendra Modi and US President Donald Trump on 13th February last year, which will include additional market access commitments and support more resilient supply chains.
The Interim Agreement between both countries will represent a historic milestone in countries’ partnership, demonstrating a common commitment to reciprocal and balanced trade based on mutual interests and concrete outcomes.
The Joint Statement said India will eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products. These include dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.
The United States will apply a reciprocal tariff rate of 18 percent on goods of India, including textiles and apparel, leather and footwear, plastic and rubber, organic chemicals, home décor, artisanal products, and certain machinery. The United States will also remove tariffs on certain aircraft and aircraft parts of India imposed to eliminate threats to national security.
Both countries have committed to providing each other with preferential market access in sectors of respective interest on a sustained basis. India and US will establish rules of origin that ensure that the benefits of the Agreement accrue predominantly to both countries.
The two countries will address non-tariff barriers that affect bilateral trade. India has agreed to address long-standing barriers to the trade in US medical devices. India.
