The United States and India reached an agreement interim trade agreement this would reduce customs duties on both countries, a joint statement revealed on Friday.
“The interim agreement between the United States and India will represent a historic milestone in the partnership between our countries, demonstrating a shared commitment to reciprocal and balanced trade based on mutual interests and concrete results,” the statement said.
US Trade Ambassador Jamieson Greer congratulated the President that of Donald Trump “a deal” for the deal, saying it “unlocks one of the world’s greatest economies for American workers and producers, lowering tariffs on all American industrial products and a wide range of agricultural products.”
He added that Friday’s announcement “demonstrates the deepening ties between the United States and India as we create new opportunities for farmers and entrepreneurs in both countries. I thank Indian Minister of Commerce and Industry Goyal for his leadership and commitment to fair and balanced trade with the United States.”
U.S., ARGENTINA STRIKE QUICK TRADE DEAL REDUCING CUSTOMS AND OPENING MARKETS TO U.S. EXPORTS
President Donald Trump and Indian Prime Minister Narendra Modi shake hands before their meeting at Hyderabad House, February 25, 2020, in New Delhi, India. (AP Photo/Alex Brandon, file / AP Newsroom)
This comes after Trump said on Monday that the United States and India had agreed to the trade deal following his phone call with Indian Prime Minister Narendra Modi.
Under the terms of the agreement, India will “eliminate or reduce tariffs on all U.S. industrial products” and other food and agricultural products like animal feed, nuts and fruits.
In exchange, the United States will apply a reciprocal duty rate of 18% on products from India, including “textiles and clothing, leather and footwear, plastics and rubber, organic chemicals, home decor, handicrafts, and certain machinery.”
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A billboard in Ahmedabad, India, in 2020, depicting President Trump, the first lady and Indian Prime Minister Narendra Modi. (Reuters/Amit Dave/Reuters)
Once the interim agreement is reached, the United States will also eliminate reciprocal tariffs on other products, “including generic pharmaceuticals, precious stones and diamonds, and aircraft parts,” according to the joint statement.
Former 50% tariff on Indian goods reduced in exchange for India stop purchases of Russian oil and reduce trade barriers.
The Daendayal port in Candlela, in the western state of Gujarat, India. (Reuters/Amit Dave/Reuters)
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The agreement adds that “India intends to purchase $500 billion worth of American energy productsaircraft and aircraft parts, precious metals, technology products and coking coal over the next 5 years.
A formal trade agreement between the two countries is expected in March.
