US Trade Representative Ambassador Jamieson Greer is set to visit India this week as New Delhi and Washington push to conclude an interim trade agreement that could form the first phase of a broader bilateral trade pact. As per the Office of the US Trade Representative, Greer will meet Commerce and Industry Minister Piyush Goyal and other senior Indian officials to discuss the India-US joint statement and the interim agreement as part of negotiations for a wider US-India Bilateral Trade Agreement (BTA). The visit follows negotiator-level talks held in New Delhi from June 2 to June 4, with Indian officials indicating that both sides are working to resolve the remaining issues before finalising the framework of the interim pact. Commerce Secretary Rajesh Agrawal had earlier stated that discussions between Greer and Goyal were expected to focus on giving final touches to the framework deal as well as the larger BTA, that has also been under discussions between the two sides. Commerce and Industry Minister Piyush Goyal confirmed that his US counterpart would be visiting India for discussions on the trade pact, with the primary goal being to advance the proposed interim trade agreement and finalize the first phase of the broader BTA.
The timing of the negotiations is significant as a temporary 10 per cent tariff imposed by the US on all trading partners on February 24, 2026, is scheduled to expire on July 24. As per recent reports, once the temporary arrangement ends, a new tariff framework will need to be put in place, adding urgency to the ongoing discussions with both countries keen to secure clarity on market access and tariff structures before the current arrangement lapses. Earlier this month, Goyal said India and the US were moving towards closing all open issues in the interim trade agreement and expressed confidence that the first phase of the BTA could be concluded by the middle of next month. The comments have fuelled expectations that negotiators may be entering the final stages of discussions, with momentum around the talks receiving a further boost after Prime Minister Narendra Modi and US President Donald Trump met on the sidelines of the G7 Summit in France last week.
Trump said the two countries were "very close" to finalising a trade deal and described Modi as a "tough negotiator," while highlighting the strong personal rapport between the two leaders. As per NDTV Profit, the trade discussions have gained momentum following a meeting between Modi and Trump on the sidelines of the G7 summit in France last week. During the interaction, Trump emphasized the strong personal rapport he shares with the Indian Prime Minister, with the comments fuelling expectations that negotiators may be entering the final stages of discussions. After concluding his India visit, Greer will travel to Uzbekistan for meetings with President Shavkat Mirziyoyev and other senior officials to discuss trade ties and economic cooperation.
India may seek a sunset clause in its proposed interim trade agreement with the United States, following the European Parliament's recent decision to insert such a provision into EU-US trade legislation. As per Business Standard, the proposed sunset clause would require the arrangement to expire on December 31, 2029, unless both sides agree to extend it. The rationale stems from uncertainty surrounding future US tariff actions, including multiple Section 301 trade investigations that could impose different rates on various trading partners. Under the proposed framework, India could face a 12.5 per cent tariff rate under forced-labour investigation measures, while another Section 301 investigation involving structural excess capacity allegations remains unconcluded. Officials have maintained that India is seeking a trade arrangement that preserves a comparative advantage over competing economies, and a sunset clause would provide an opportunity to revisit the agreement if tariff structures or market access conditions change significantly after the deal is signed.
According to the Ministry of External Affairs (MEA), Modi and Trump have instructed officials of the two countries to work towards concluding a 'balanced, mutually beneficial and commercially meaningful' bilateral trade agreement at the earliest. The leaders noted with particular satisfaction the significant progress made in negotiations towards an interim Bilateral Trade Agreement and instructed their officials to work towards a balanced, mutually beneficial, and commercially meaningful agreement at the earliest, as per the MEA statement. The two leaders also reviewed progress under the India-US COMPACT initiative — Catalyzing Opportunities for Military Partnership, Accelerated Commerce and Technology — launched during Modi's visit to Washington in February this year. The India-US COMPACT initiative has shown substantial progress since their meeting in Washington DC in February 2025, with both countries having set an ambitious target of significantly expanding bilateral trade in the coming years.
India and the US had finalised the contours of the first phase of the trade pact in a joint statement issued on February 7, with the framework providing significant commitments from both sides. Under the agreed framework, India proposed to eliminate or reduce tariffs on all US industrial goods and a wide range of food and agricultural products, including dried distillers' grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products. New Delhi has also expressed its intentions to purchase USD 500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next five years. The agreement is therefore expected to extend beyond tariffs and include broader trade and investment commitments, with the focus on whether both sides can convert months of discussions into a framework that offers greater certainty on tariffs, improves market access and lays the foundation for a broader bilateral trade agreement.
