New Delhi [India], February 5 (ANI): Union Minister of Commerce and Industry Piyush Goyal announced on Thursday that the first tranche of the bilateral trade agreement between India and the United States is now ready, with a joint statement expected to be issued within the next four to five days. A formal legal agreement on the trade deal is expected to be signed around mid-March, he said.

Goyal said that after the joint statement is released, the US is expected to issue an executive order to reduce tariffs to 18 per cent.

The Union Minister said this today during the signing ceremony of the Terms of Reference (ToR) for a Free Trade Agreement (FTA) between India and the Gulf Cooperation Council (GCC). Highlighting the scale of the upcoming engagement with Washington DC, Goyal stated, 'Our orders for US aircraft and engine etc will alone cross USD 100 billion.'

Providing technical clarity on the procedural aspects of the deal, Commerce Secretary Rajesh Agrawal explained the distinction between the two nations' tariff structures. 'Their (US) tariffs are executive tariffs. Our tariffs are MFN tariffs. So (our) MFN tariffs reduction only can take place after the legal agreement has been signed. That will only happen after the legal agreement has been signed,' Agrawal said.

On Wednesday, Goyal said that India and the US are complementary economies and the trade deal between the countries is beneficial for both parties.

Since Prime Minister Narendra Modi's visit to the US in February 2025, the two sides have been negotiating a bilateral trade agreement (BTA) that would benefit both.

On February 2, a phone call between Prime Minister Narendra Modi and US President Donald Trump led to the announcement of the trade deal.

Addressing concerns raised by some members in the Lok Sabha, Goyal said, 'Negotiators from both sides have been at various levels over the past year. During the negotiations, both sides safeguarded their important and sensitive sectors from the trade deal, at the same time ensuring maximum benefits for both countries.'

During these negotiations, Goyal said the Indian side secured protection for its sensitive sectors, particularly agriculture and dairy.'There were sectors which were important and sensitive from the US point of view. After negotiations for nearly a year, both sides have been successful in finalizing several areas of the bilateral trade agreement,' he said, speaking in the Lok Sabha.

The BTA, formally proposed in February 2025 following directives from the leadership of both nations, seeks to more than double bilateral trade, from the current USD 191 billion to USD 500 billion by 2030.

Mewnwhile at the signing ceremony today featured a high-level delegation, including Commerce Secretary Rajesh Agrawal, Chief Negotiator for India Ajay Bhadoo, Chief Negotiator for the GCC Raja Al Marzouki, Director General for FTA at the GCC Abulrazzaq Aljraid, and Additional Secretary at the Ministry of External Affairs Aseem Mahajan.

Reflecting on the historical depth of the partnership, Goyal observed that while formal discussions have been ongoing for two decades, the two regions have functioned as trading partners for over 5,000 years. 'This will able to free flow of goods and services and take our bilateral relations to greater heights,' the Minister said, adding that India is actively pursuing FTAs with developed nations to expand its global economic footprint.

According to Goyal, the agreement will provide 'a great opportunity to our MSMEs, farmers, fishermen, youth and manufacturing.' He specifically identified food processing, infrastructure, and the petrochemical industry as sectors that will 'hugely benefit' from the high-quality companies and increased market access fostered by the pact. (ANI)