India and the US on Friday released the outline of an interim trade agreement. According to Reuters report, both the countries said that this confirms their commitment to negotiations towards a comprehensive bilateral trade agreement.
A joint statement issued by both the countries said, ‘The US and India will immediately implement this framework and work towards finalizing the interim agreement. So that a mutually beneficial bilateral trade agreement can be completed in accordance with the roadmap agreed in the terms of reference.
Trump had announced to reduce tariffs on India
This interim trade agreement comes after US President Donald Trump announced an agreement with India on Monday. Under this, in exchange for India stopping the purchase of Russian oil and reducing trade barriers, the US tariff on Indian goods will be reduced from 50 percent to 18 percent.
First phase of trade agreement almost ready
Indian Trade Minister Piyush Goyal said on Thursday that a formal trade deal is expected to be signed between Washington and New Delhi in March, after which India will reduce tariffs on US goods. He had told that the first phase of India-US trade agreement is almost ready. He also said that this agreement will be formalized after the joint statement and the formal agreement is expected to be signed by mid-March.
Legal draft of bilateral trade agreement may come in March
The minister had also made it clear that after the release of the joint statement, the Trump government will issue an executive order to reduce the US tariff by 18 percent. At the same time, after the release of the outline of the interim trade agreement between the two countries, the possibility of this matter gaining momentum has increased. It can be said that the legal draft of the bilateral trade agreement between India and America will come out in the month of March.
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