The interim trade deal between India and America has now been postponed for some time. According to government sources, this deal will be signed only when America prepares its new global tariff structure. In fact, the US Supreme Court has abolished those powers of Donald Trump in a recent decision. Under which they used to impose heavy tariffs using the International Emergency Economic Powers Act (IEEPA). The deal was to be signed in March, postponed due to the court’s decision. This trade deal between India and America was earlier to be signed in this month i.e. March. However, a US Supreme Court decision has invalidated the old reciprocal tariffs. Because of this, the Trump administration now has to prepare a new framework for global trade. Till the new structure comes, America has temporarily imposed 10% tariff on all countries under Section 122 of the Trade Act 1974. This system may remain in force for the next 5 months. Will sign the deal only after seeing the comparative advantages. A senior government official said, ‘We are working on the details of the deal, but it will be signed only when their new tariff architecture is ready. Any country makes a compromise only when it gets an advantage in the market compared to other competing countries. India had earlier fixed a reciprocal tariff rate of 18% for certain products. The official said that if America’s new structure remains the same as the old one, then the rates will remain the same, otherwise changes are possible. The situation will not be like that of Malaysia, India’s situation is different, recently Malaysia has withdrawn from its trade agreement with America. Clarifying on this, the officer said that India’s situation is different from Malaysia. Malaysia had signed a legal agreement, which became void after the US court’s decision. At the same time, India has so far only talked about a ‘framework deal’ and has not signed any legal document. Therefore, India has scope to make changes according to the circumstances. Discussion is also going on on non-tariff barriers. Apart from tariffs, both the countries are also in continuous talks to resolve non-tariff barriers and sectoral tariffs imposed under Section 232. “We are using this time constructively so that when the right time comes to sign, there is no delay due to technical issues,” the official said. The government is also looking into the legal aspects of the ‘Section 301’ investigation being conducted by America. Commerce Secretary said- Export target is 860 billion dollars. Commerce Secretary Rajesh Aggarwal clarified that after the decision of the Supreme Court, the old tariffs are not effective. He said that India and America are engaged in talks for a deal beneficial to each other. On the ongoing tension in West Asia, he said that this has created some challenges in logistics and shipping. This may have some impact on India’s exports and imports, but the government expects India’s total goods and services exports to reach $860 billion in this financial year. What is Section 122 and Section 301? Section 122: Under this, the US President can impose temporary tariffs for 150 days if there is a major shortfall in the balance of payments. Section 301: This gives the US the power to take action against countries whose trade policies are unfair or against US interests. Trump imposed tariffs using a 49-year-old law
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India-US interim trade deal to be signed in March postponed: Now it will happen after the new tariff structure is ready; US Supreme Court cancels Trump tariffs
