Although the trade deal between India and the United States was “ready” to be signed, the countries were discussing a comparative advantage for New Delhi over competing economies, Commerce Secretary Rajesh Agrawal was quoted as saying by The Hindu on Monday.

“The framework deal is ready, and whenever it is the right time, it will be signed,” Agrawal reportedly said at a press briefing. “We are just waiting. Because deals are about comparative advantage.”

The commerce secretary added: “When you do a deal, you get preferential market access in India and India gets preferential market access in that market.”

He said that the aspect of these preferences over some competitors “is getting structured”. “Whenever it is ready, the deal will get signed,” The Hindu quoted Agrawal as saying.

Earlier in the day, Union Commerce Minister Piyush Goyal rejected a Reuters report that India had declined a quick trade agreement with the US during talks in June and was holding out for a better deal.

Reuters quoted an unidentified Indian government official as saying that the trade deal had not been signed because Washington had not assured New Delhi on its key demands.

The demands included a tariff advantage over competitors such as China and a commitment that the US would not impose fresh levies after the agreement.

“Our position is clear,” the news agency quoted the official as saying. “We don’t intend to rush into a deal that is not on favourable terms or compromise on red ​lines like ceding ground on agriculture.”

The report also mentioned remarks made by Goyal on June 25.

Speaking at the India Global Forum in London, Goyal had said that the agreement had already been agreed to by both sides in February, but its implementation depends on finalising a “competitive advantage” for India compared with countries such as Vietnam, Thailand, the Philippines, Indonesia, Malaysia, China, Bangladesh and Sri Lanka.

The minister had said at the time that the negotiations between the two countries had centred on reducing tariffs to 18% from 50%, which he described as creating an advantage for India over several competing economies.

On Monday, Goyal described the Reuters report as “completely false, baseless and misleading”.

Referring to US Trade Representative Jamieson Greer’s June visit to Delhi, Goyal said that he had “fantastic meetings” with the official.

“Both sides reaffirmed their commitment to an agreement that is balanced, commercially meaningful, and delivers tangible benefits for businesses, farmers, workers and consumers in both countries,” Goyal said. “Our teams remain fully engaged in achieving this objective.”

Trade deal uncertainty

After an interim bilateral trade deal was agreed on February 2, US tariffs on Indian goods would have been reduced to 18% from a combined rate of 50%. The earlier rate of 50% had included a punitive levy of 25% imposed in August over India’s purchase of Russian oil.

However, negotiations on the final deal were postponed after the US Supreme Court on February 20 struck down global tariffs imposed by President Donald Trump, ruling that he had exceeded his authority.

In response, Trump imposed a temporary 10% tariff on goods imported into the US, citing his authority under the 1974 Trade Act. The new tariff rate is for a maximum of 150 days, unless the US Congress approves an extension.

On February 21, the US president said that he was increasing the tariffs to the “fully allowed, and legally tested” level of 15% from 10% with immediate effect. However, it is unclear as to when the increased tariff rate would take effect.

This has left the status of US’ trade deals with countries, including India, unclear.

Edited by Sara Varghese.