India and the United States are expected to finalise their long-awaited trade agreement only after the conclusion of the ongoing Section 301 investigation, according to sources familiar with the matter.
Sources said New Delhi is seeking assurances that no additional tariffs will be imposed once the bilateral trade deal is concluded, as negotiators work to provide greater predictability for businesses and investors.
The timing is significant as the US' temporary 10% tariff regime is set to expire on July 24. Following its lapse, basic Most Favoured Nation (MFN) tariff rates are expected to come into effect, sources added.
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India is also pressing for more favourable tariff treatment compared with competing manufacturing economies, aiming to strengthen its position as a global production and export hub.
The development comes amid expectations that negotiations are entering their final phase. Commerce and Industry Minister Piyush Goyal had earlier indicated that the India-US trade agreement could be signed by the end of July.
Sources maintain that the final contours of the deal will become clearer once the Section 301 review process is completed, paving the way for the two sides to move towards a formal agreement.
United States President Donald Trump on Thursday said that Washington and New Delhi will finalise a comprehensive trade agreement, praising Prime Minister Narendra Modi in warm personal terms even as broader bilateral trade negotiations continue.
Speaking to media, Trump said India had historically benefited from an unequal trade relationship with the United States.
ALSO READ: 'We Have Good Relationship': Trump Praises PM Modi, Says India And US Will Get To Trade Deal
"For years, India took advantage of the United States.They charged us tremendous tariffs and paid nothing," he said. However, he indicated that the dynamics had since shifted in America's favour, adding, "Now it is the exact reverse and we are making a lot of money with India."
Meanwhile, Trump also praised Prime Minister Narendra Modi.
"We will get to a deal because I like your Prime Minister a lot; he is a good friend of mine, and we get along well. We have a good relationship," he said.
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