India-US trade pact 'more or less finalised', says Commerce Secretary

Commerce Secretary Rajesh Agarawal said on Wednesday that the India-United States trade pact is "more or less finalised" with only a few issues under discussion, and it will be signed at an appropriate time. He was speaking to reporters in Mumbai.

Mr. Agarawal explained that any trade deal must offer preferential market access to both sides. "From the Indian side, because we are operating on MFN (most favoured nation) tariffs, it is easier to do so. From their (the U.S.) side, they are operating on executive tariffs. So, they are building an architecture, which will create those differentials and create a preferential market access. So, at an opportune time, we should be able to sign," he said.

Most favoured nation (MFN) tariff is the standard import duty a country applies to goods from another country in the absence of a trade agreement that grants lower duties. The U.S. has imposed an additional 10% duty over its MFN tariff on several countries, including India, under a Section 301 investigation related to forced labour, effective from July 24.

Commerce Minister Piyush Goyal has earlier indicated that the details of the Bilateral Trade Agreement (BTA) with the U.S. will be announced once Washington offers India preferential terms relative to its competitors.

The two countries finalised the framework for the first phase of the pact in February, but subsequent changes in the U.S. tariff landscape led to further negotiations.

Bilateral trade between India and the U.S. continues to grow. During April-July 2026-27, India's merchandise exports to the U.S. increased 3% year-on-year to $34.5 billion, while imports rose 22.42% to $22.12 billion.

Mr. Goyal is scheduled to visit the U.S. in late September for the G-20 Trade Ministerial meeting in Milwaukee and hold bilateral talks with U.S. Trade Representative Jamieson Greer, where trade pact issues are expected to be discussed.

On the proposed India-Chile Comprehensive Economic Partnership Agreement (CEPA), Mr. Agarawal said negotiations are at the final stages, though some areas remain unresolved. "We are at the final stages. There are certain areas on which we are presently stuck, but we look forward to the next 2-3 months...in which we should find something," he added.

Regarding the India-New Zealand free trade agreement, the Secretary said it is expected to come into force from October. The pact was signed on April 27. "I'll come across with a date once it is finalised," he said.

Speaking about the upcoming BRICS meeting, Mr. Agarawal said more than 2,000 business delegates from member countries, including over 900 international delegates, will participate. He described it as a good opportunity for businesses to coordinate and forge new partnerships for increasing trade.

When asked about the possibility of discussions on rupee-based trade at BRICS, he said it is not within the domain of commerce to discuss.