India-US trade deal: Social security agreement not under discussion, say govt sources 

Social security agreement not under discussion, say govt sources 

A social security agreement is not part of the ongoing discussions between India and the United States for a mini trade deal, a senior official from the Ministry of Commerce and Industry said on July 4.

A social security agreement allows employees posted abroad to avoid mandatory contributions to the host country’s social security scheme, while still counting their overseas work period toward pension benefits at home. For employers, it eliminates the burden of double social security payments, significantly reducing operational costs.

The official further said India is not going to face Vietnam-type tariffs as India is not involved in rerouting third-country goods.

Besides, India continues to seek a competitive edge over other countries in the US through duty cuts for its labour-intensive goods. “India is pushing for sustained preference over competing countries in labour-intensive areas such as textiles and leather,” according to the official who is privy to the negotiations.

As per an assessment done by the Ministry of Commerce, the US may still have to rely on importing steel, despite the country imposing a 50% duty on the metal. “The cost of manufacturing steel in the US is high. So, they may still have to rely on imports. Besides, we don't think the US is exempting anyone on steel. India also imposed safeguard duties like the rest of the world to protect domestic industry,” the official said.

India, On July 4, proposed imposing retaliatory duties under WTO (World Trade Organisation) norms over American tariffs of 25-percent on automobile parts in the name of safeguard measures.

When asked about a breakthrough before the July 9 deadline when the 16% additional tariffs on India would kick in, the official reiterated that “all possibilities are open”, and that the trade deal will be signed when it is mutually beneficial and not under “deadline pressure”.

Talking to reporters on the sidelines of an event in Delhi, Commerce Minister Piyush Goyal on July 4 said India does not enter trade agreements based on deadlines, but on mutual benefit and national interest.