India-US trade pact more or less finalised, few issues under discussion: Com Secy Rajesh Agarawal

The India-US trade pact is “more or less” finalised, with the two sides discussing only a few remaining issues, and the agreement will be signed at an appropriate time, Commerce Secretary Rajesh Agarawal said on Wednesday.

Agarawal said a trade agreement must provide a certain degree of preferential market access to both sides.

“My minister (Commerce Minister Piyush Goyal) on record has multiple times indicated that the deal has more or less been finalised. There are a few things which both sides are discussing, but it will be signed at an appropriate time,” he told reporters here.

He explained that India, which operates on most-favoured-nation (MFN) tariffs, has greater flexibility in offering preferential access, while the US is currently operating with executive tariffs.

“From the Indian side, because we are operating on MFN (most favoured nation) tariffs, it is easier to do so. From their (US) 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.

Agarawal added that bilateral trade between India and the US was continuing to grow.

Goyal has recently said that details of the Bilateral Trade Agreement (BTA) would be announced once Washington offers India preferential terms compared with its competitors.

In trade terminology, an MFN tariff refers to the standard import duty imposed by a country on goods from another country in the absence of a trade agreement providing lower tariffs.

The US has imposed an additional 10 per cent import duty over and above its MFN tariff on several countries, including India, under a Section 301 probe concerning forced labour. The additional duty came into effect on July 24.

During April-July of 2026-27, India's merchandise exports to the US rose 3 per cent to USD 34.5 billion, while imports increased 22.42 per cent to USD 22.12 billion.

India and the US had announced in February that they had finalised the framework for the first phase of the trade pact. However, changes in the US tariff landscape subsequently led to further negotiations.

Goyal is scheduled to visit the US in late September to attend the G20 Trade Ministerial in Milwaukee and hold bilateral discussions with US Trade Representative Jamieson Greer. Issues related to the trade pact are expected to figure in those talks.

INDIA-CHILE trade pact

Agarawal said negotiations between India and Chile were progressing well, though some issues remained 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 said.

The two countries are negotiating a Comprehensive Economic Partnership Agreement (CEPA).

INDIA-NEW ZEALAND FTA

The India-New Zealand free trade agreement is expected to come into force from October, Agarawal said.

“I'll come across with a date once it is finalised,” he added.

India and New Zealand signed the pact on April 27.

BRICS meeting

More than 2,000 business delegates from all BRICS member countries are expected to participate in the upcoming meeting, Agarawal said.

“There are more than 900 international delegates also who are joining this session,” he said.

The gathering would provide businesses from BRICS countries an opportunity to coordinate, establish contacts and explore new partnerships to increase trade, he said.

Asked whether there could be discussions on rupee-based trade, Agarawal said: “I don't think that is something in the domain of commerce that we are talking about.”