By Admin 
India-US Trade Deal: After the announcement of the big trade deal between India and America, now both the countries are preparing a joint statement, which will have the complete outline of this agreement. This joint statement may be issued in the next four to five days or even earlier. Two days later, an executive order is expected from America, under which the tariff on Indian goods will be reduced from 50 percent to 18 percent.
This information was given by Union Commerce Minister Piyush Goyal and Commerce Secretary Rajesh Aggarwal. He told that this is the same high-profile trade deal, which was announced by US President Donald Trump this week. Negotiations on this agreement were going on for about a year. Piyush Goyal also said that this deal can be formally signed by mid-March.
Joint statement will come in four-five days
Speaking to reporters after a joint press conference with Gulf Cooperation Council (GCC) officials in New Delhi, Piyush Goyal said, “Very good talks are going on between India and the US as decided by both our leaders. The first tranche of our Bilateral Trade Agreement (BTA) is almost ready. We hope that in the next four to five days or before, a joint statement will be issued between India and the US and based on that the further process will begin.”
He told that after this joint statement, America can reduce the 25 percent reciprocal tariff and 25 percent penalty tariff (for buying oil from Russia) imposed on India i.e. the total 50 percent tariff to 18 percent. After this, a formal draft agreement will be prepared, which is expected to be signed between New Delhi and Washington in mid-March.
New tariff will be implemented by executive order
Piyush Goyal said that the new tariff of 18 percent will be implemented after the executive order of America. He told that this executive order can come about two days after the joint statement is issued. The minister said, “The joint statement may come in four to five days, or even before that. We have kept this entire process very fast.”
These sectors will get direct benefits
This decision will immediately benefit India’s labour-intensive exports worth more than $30 billion. This includes textiles, readymade garments, leather products, footwear, marine products and goods related to Micro, Small and Medium Enterprises (MSME). People having knowledge of this matter said that due to reduction in tariff, sales of these sectors in America will increase.
Rajesh Aggarwal told the further process
Commerce Secretary Rajesh Agarwal also said in the press conference that coming out with a joint statement is a normal process. He said, “Once the deal is finalized at the level of leaders, then a joint statement is issued. As Minister Piyush Goyal said, it may come in the next four to five days or even earlier.”
He further said that after the joint statement, it will be converted into a legal agreement and the same agreement will come into force. Aggarwal said that its timeline is mid-March. He made it clear that the tariff reduction from India’s side will happen only when the legal agreement is signed because the tariffs in India are under the MFN system. Whereas in America, tariffs are imposed through executive order, hence the decision on reduction can be taken earlier there.