NEW DELHI, Feb 7: India and the United States have finally signed an interim tariff agreement aimed at reducing trade barriers and strengthening bilateral economic cooperation, said Rajeev Juneja, President of PHDCCI in a communique released on Saturday.
The framework was agreed upon in ongoing negotiations to expand two-way trade and to lay the groundwork for a comprehensive Bilateral Trade Agreement (BTA).
“Under the terms of the interim agreement, the United States will apply a reciprocal tariff of 18 per cent on Indian origin goods, which include textiles, apparel, leather and footwear, plastics and rubber, organic chemicals, home decor, artisanal products and certain machinery” Juneja said.
The United States will also lift certain national security-related tariffs, previously applied on Indian aircraft and aircraft parts under steel, aluminium and copper measures.
Juneja said that based on announced tariff adjustments, the following Indian sectors are expected to see positive effects: pharmaceuticals (generic drugs), gems and jewellery, aviation and aircraft components, textiles and apparel, engineering goods and machinery, chemicals and plastics, handicrafts and home decor.
The joint statement accompanying the agreement highlights that implementation of these tariff measures will commence promptly, with detailed operational guidelines to be issued by the competent authorities.
Both sides have reaffirmed their commitment to pursue a full BTA that encompasses goods, services, digital trade, investment cooperation and supply chain resilience.
Echoing the same, Dr. Ranjeet Mehta, CEO and Secretary General PHDCCI said, ” This interim tariff agreement marks a significant development in the US-India trade relations, potentially expanding market access for exporters in both countries and providing a stable and comprehensive trade framework.”
(UNI)
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