India is likely to seek a sunset clause in its proposed interim trade agreement with the United States, mirroring a provision included in the recent trade arrangement between the European Union and the US. The move comes as countries negotiating trade deals with Washington increasingly seek safeguards against future policy changes.&nbsp;The discussion follows a recent decision by the European Parliament to include a sunset clause in legislation implementing the tariff provisions of the EU-US trade arrangement. Under the provision, the agreement will automatically expire on December 31, 2029, unless both sides agree to extend it.&nbsp;A sunset clause is a provision in an international trade agreement that sets an automatic expiry date unless all participating countries explicitly agree to renew it. While free trade agreements have traditionally remained in force indefinitely, countries negotiating with the administration of US President Donald Trump are increasingly insisting on such clauses as a protective mechanism.&nbsp;Also Read: <a href="https://www.wionews.com/india-news/india-us-trade-deal-in-final-stages-us-envoy-says-talks-are-down-to-the-last-1-or-2-1782777789367">India-US trade deal in final stages: US envoy says talks are down to the last 1 or 2%</a><h2>Why are countries seeking sunset clauses?</h2>Countries negotiating trade agreements with the United States say they face uncertainty because of Washington's frequent use of unilateral tariffs, including Section 301 and Section 232 measures, as well as changing trade policies. Instead of committing to a permanent arrangement, governments are seeking a sunset clause that provides an automatic exit if the agreement is no longer beneficial.&nbsp;The provision is intended to prevent a situation where trading partners reduce their own trade barriers while continuing to face new tariffs imposed by the United States. It also creates an opportunity to reassess the agreement after a fixed period instead of requiring a politically difficult termination process.&nbsp;Supporters of the approach describe it as a defensive safeguard that allows governments to protect their domestic industries while maintaining flexibility in future trade negotiations.<h2>EU and USMCA offer recent examples</h2>The European Parliament recently incorporated the Turnberry trade framework with the United States into law and attached a sunset clause covering tariff concessions on industrial and agricultural goods. The provision requires those concessions to expire on December 31, 2029, unless both sides decide to renew the arrangement.&nbsp;The European Union said that because Trump's trade policies are fluid, it "makes no sense to have legislation based on an unfair deal forever." The legislation also requires a comprehensive review by the middle of 2029 before any extension can be approved.&nbsp;A similar mechanism was introduced by the Trump administration during the renegotiation of the North American Free Trade Agreement. The resulting United States-Mexico-Canada Agreement included a 16-year sunset clause along with a mandatory joint review every six years.&nbsp;Supporters say sunset clauses offer three main advantages. They give countries leverage by preventing the United States from securing long-term market access while imposing separate tariffs, provide a safety mechanism if domestic industries are hurt by American imports, and allow a review of the agreement in 2029 at the end of the current political cycle in Washington.

The European Parliament approved the Turnberry trade framework with the United States, including a sunset clause that expires tariff concessions on December 31, 2029, unless renewed by both sides.

India is likely to seek a sunset clause in its proposed interim trade agreement with the United States, mirroring a provision included in the recent trade arrangement between the European Union and the US. The move comes as countries negotiating trade deals with Washington increasingly seek safeguards against future policy changes. The discussion follows a recent decision by the European Parliament to include a sunset clause in legislation implementing the tariff provisions of the EU-US trade arrangement. Under the provision, the agreement will automatically expire on December 31, 2029, unless both sides agree to extend it. A sunset clause is a provision in an international trade agreement that sets an automatic expiry date unless all participating countries explicitly agree to renew it. While free trade agreements have traditionally remained in force indefinitely, countries negotiating with the administration of US President Donald Trump are increasingly insisting on such clauses as a protective mechanism. Also Read: India-US trade deal in final stages: US envoy says talks are down to the last 1 or 2% Why are countries seeking sunset clauses? Countries negotiating trade agreements with the United States say they face uncertainty because of Washington's frequent use of unilateral tariffs, including Section 301 and Section 232 measures, as well as changing trade policies. Instead of committing to a permanent arrangement, governments are seeking a sunset clause that provides an automatic exit if the agreement is no longer beneficial. The provision is intended to prevent a situation where trading partners reduce their own trade barriers while continuing to face new tariffs imposed by the United States. It also creates an opportunity to reassess the agreement after a fixed period instead of requiring a politically difficult termination process. Supporters of the approach describe it as a defensive safeguard that allows governments to protect their domestic industries while maintaining flexibility in future trade negotiations. EU and USMCA offer recent examples The European Parliament recently incorporated the Turnberry trade framework with the United States into law and attached a sunset clause covering tariff concessions on industrial and agricultural goods. The provision requires those concessions to expire on December 31, 2029, unless both sides decide to renew the arrangement. The European Union said that because Trump's trade policies are fluid, it "makes no sense to have legislation based on an unfair deal forever." The legislation also requires a comprehensive review by the middle of 2029 before any extension can be approved. A similar mechanism was introduced by the Trump administration during the renegotiation of the North American Free Trade Agreement. The resulting United States-Mexico-Canada Agreement included a 16-year sunset clause along with a mandatory joint review every six years. Supporters say sunset clauses offer three main advantages. They give countries leverage by preventing the United States from securing long-term market access while imposing separate tariffs, provide a safety mechanism if domestic industries are hurt by American imports, and allow a review of the agreement in 2029 at the end of the current political cycle in Washington.

The European Parliament approved the Turnberry trade framework with the United States, including a sunset clause that expires tariff concessions on December 31, 2029, unless renewed by both sides.

What is the sunset clause in international trade that countries seek in deals with Trump's America?

United States Ambassador to India Sergio Gor on Monday (Jun 29) insisted that the “United States trusts India”. Speaking at the IX US-India Strategic Partnership Forum (USISPF) Leadership Summit 2026, the American envoy also revealed that the long-awaited India-US trade agreement is now in its final stretch, with only a handful of issues left to resolve.The remarks come amid intense speculation over the status of the interim trade deal, which has been under negotiation for roughly 18 months and is expected to play a key role in achieving the ambitious USD 500 billion bilateral trade target championed by President Donald Trump and Prime Minister Narendra Modi. "Most of this deal is complete. There are a few items that remain from both sides, but it's in the last 1 or 2 per cent of that deal," Gor said.Also read | <a href="https://www.wionews.com/world/us-says-trade-deal-with-india-is-very-very-close-what-s-holding-it-up-wion-decodes-1782280167960">US says trade deal with India is 'very, very close'. What's holding it up? | WION Decodes</a><h2>'The US trusts India'</h2>Beyond trade, Gor used the summit to make a broader point about the state of the relationship. According to him, American businesses continue to raise familiar concerns before entering the Indian market. Questions about intellectual property protection, regulatory certainty and tax stability are routinely brought up during meetings at the US Embassy in New Delhi.Yet the envoy argued that confidence in India has never been stronger. "Not a week goes by where an American company comes to see me, and they ask me, 'Ambassador, is it safe to invest in India? Will our IP be protected here?'" Gor said.“It's an incredibly gratifying thing to say that the United States trusts India, we work with India, and we look forward to identifying those next opportunities for both of our sides.”"There is not a day that goes by that a new item pops up for the two countries to work together," he added, pointing to artificial intelligence, emerging technologies and defence cooperation as key areas of future growth. The comments amounted to one of the strongest public endorsements of India's investment climate by a senior US official in recent months.Also read | <a href="https://www.wionews.com/india-news/us-supreme-court-makes-it-easier-to-deport-green-card-holders-what-does-it-mean-for-indians-wion-horizons-1782271724642">US Supreme Court makes it easier to deport Green Card holders: What does it mean for Indians? | WION Horizons</a><h2>Trump remains deeply invested in the relationship with India&nbsp;</h2>Gor also offered a glimpse into discussions taking place at the highest levels of the Trump administration. The ambassador revealed that he recently spent two hours with President Donald Trump in Washington and said the US President continues to speak warmly about India and his previous visits to the country."He has very fond memories of India. His last visit was one of the most remarkable visits that he continues to talk about," Gor said.The envoy also disclosed that Secretary of State Marco Rubio was so impressed by his first official visit to India in May that he is already planning a return trip before the end of the year.<h2>&nbsp;</h2>

US Ambassador Sergio Gor has revealed that the long-awaited India-US trade agreement is near completion, with negotiators working through the final 1-2% of the legal text. Speaking at the USISPF Leadership Summit 2026, Gor said a recent US Supreme Court intervention delayed the process.

United States Ambassador to India Sergio Gor on Monday (Jun 29) insisted that the “United States trusts India”. Speaking at the IX US-India Strategic Partnership Forum (USISPF) Leadership Summit 2026, the American envoy also revealed that the long-awaited India-US trade agreement is now in its final stretch, with only a handful of issues left to resolve. The remarks come amid intense speculation over the status of the interim trade deal, which has been under negotiation for roughly 18 months and is expected to play a key role in achieving the ambitious USD 500 billion bilateral trade target championed by President Donald Trump and Prime Minister Narendra Modi. "Most of this deal is complete. There are a few items that remain from both sides, but it's in the last 1 or 2 per cent of that deal," Gor said. Also read | US says trade deal with India is 'very, very close'. What's holding it up? | WION Decodes 'The US trusts India' Beyond trade, Gor used the summit to make a broader point about the state of the relationship. According to him, American businesses continue to raise familiar concerns before entering the Indian market. Questions about intellectual property protection, regulatory certainty and tax stability are routinely brought up during meetings at the US Embassy in New Delhi. Yet the envoy argued that confidence in India has never been stronger. "Not a week goes by where an American company comes to see me, and they ask me, 'Ambassador, is it safe to invest in India? Will our IP be protected here?'" Gor said. “It's an incredibly gratifying thing to say that the United States trusts India, we work with India, and we look forward to identifying those next opportunities for both of our sides.” "There is not a day that goes by that a new item pops up for the two countries to work together," he added, pointing to artificial intelligence, emerging technologies and defence cooperation as key areas of future growth. The comments amounted to one of the strongest public endorsements of India's investment climate by a senior US official in recent months. Also read | US Supreme Court makes it easier to deport Green Card holders: What does it mean for Indians? | WION Horizons Trump remains deeply invested in the relationship with India Gor also offered a glimpse into discussions taking place at the highest levels of the Trump administration. The ambassador revealed that he recently spent two hours with President Donald Trump in Washington and said the US President continues to speak warmly about India and his previous visits to the country. "He has very fond memories of India. His last visit was one of the most remarkable visits that he continues to talk about," Gor said. The envoy also disclosed that Secretary of State Marco Rubio was so impressed by his first official visit to India in May that he is already planning a return trip before the end of the year.

US Ambassador Sergio Gor has revealed that the long-awaited India-US trade agreement is near completion, with negotiators working through the final 1-2% of the legal text. Speaking at the USISPF Leadership Summit 2026, Gor said a recent US Supreme Court intervention delayed the process.

'The US trusts India,' says Sergio Gor, insists Trump remains deeply invested in ties

The proposed India-US bilateral trade agreement is in its final stage, with only a small portion of the legal text left to be completed, United States Ambassador to India Sergio Gor said on Monday.&nbsp;Speaking at the IX US-India Strategic Partnership Forum Leadership Summit 2026, Gor dismissed speculation about diplomatic differences and said negotiators from both countries were close to concluding the long-awaited agreement. He also said President Donald Trump remained committed to building a mutually beneficial partnership with India. The trade agreement has been under negotiation for around 18 months. Gor said the process faced a temporary setback after a recent Supreme Court intervention, but discussions regained momentum following the recent visit of US Trade Representative Ambassador Jamieson Lee Greer to New Delhi.&nbsp;"That trade deal, we thought, was done until the Supreme Court decided to have another way," Ambassador Gor explained to the summit. "And so we continue to pursue that, and we are very close. Just last week, US Trade Representative Ambassador Jamieson Lee Greer visited us in New Delhi for two days, and we are hopefully in the final steps of this deal. Most of this deal is complete. There are a few items that remain from both sides, but it's in the last 1 or 2 per cent of that deal."&nbsp;Gor also compared the pace of negotiations with Europe's experience, noting that the India-US agreement had progressed much faster.&nbsp;Also Read: <a href="https://www.wionews.com/world/trump-loses-top-court-bid-to-overturn-5-million-sexual-assault-verdict-what-is-the-e-jean-carroll-case-1782762005066">Trump loses top Court bid to overturn $5 million sexual assault verdict: What is the E. Jean Carroll case?</a>&nbsp;"People ask me why this is taking so long? We've been at this trade deal for a year and a half. To put it into perspective, the European trade deal took 20 years. And so no matter what, as long as we beat the European deal, I think we're in good shape."&nbsp;The ambassador's remarks came days after Commerce Minister Piyush Goyal said India would sign the agreement only after securing a framework that provides a comparative tariff advantage for Indian exports over competing countries.&nbsp;"We cannot enter a deal with the US until the framework of having a comparative advantage is finalised," Goyal said, adding "India and the United States are very ‌close ⁠to ⁠finalising a trade deal".&nbsp;During his address, Gor also highlighted the US Mission's investment achievements in India, saying it had helped secure 20.5 billion dollars in new investments into the United States this year.&nbsp;Highlighting the competition among US embassies to attract investment, Gor contrasted the figures achieved by the mission in New Delhi with those reported by several European embassies.&nbsp;"You have these beautiful embassies in Europe, and they come up on stage, and they say 'We're proud to announce five hundred million dollars', 'We're proud to announce seven hundred million dollars'," Ambassador Gor stated. "Our embassy in New Delhi, this year, was very proud to announce that we brought in twenty-five billion dollars in new investment."

Sergio Gor said the trade deal was briefly delayed by a Supreme Court intervention but regained momentum after Jamieson Lee Greer's New Delhi visit, with most of the agreement now complete.

The proposed India-US bilateral trade agreement is in its final stage, with only a small portion of the legal text left to be completed, United States Ambassador to India Sergio Gor said on Monday. Speaking at the IX US-India Strategic Partnership Forum Leadership Summit 2026, Gor dismissed speculation about diplomatic differences and said negotiators from both countries were close to concluding the long-awaited agreement. He also said President Donald Trump remained committed to building a mutually beneficial partnership with India. The trade agreement has been under negotiation for around 18 months. Gor said the process faced a temporary setback after a recent Supreme Court intervention, but discussions regained momentum following the recent visit of US Trade Representative Ambassador Jamieson Lee Greer to New Delhi. "That trade deal, we thought, was done until the Supreme Court decided to have another way," Ambassador Gor explained to the summit. "And so we continue to pursue that, and we are very close. Just last week, US Trade Representative Ambassador Jamieson Lee Greer visited us in New Delhi for two days, and we are hopefully in the final steps of this deal. Most of this deal is complete. There are a few items that remain from both sides, but it's in the last 1 or 2 per cent of that deal." Gor also compared the pace of negotiations with Europe's experience, noting that the India-US agreement had progressed much faster. Also Read: Trump loses top Court bid to overturn $5 million sexual assault verdict: What is the E. Jean Carroll case? "People ask me why this is taking so long? We've been at this trade deal for a year and a half. To put it into perspective, the European trade deal took 20 years. And so no matter what, as long as we beat the European deal, I think we're in good shape." The ambassador's remarks came days after Commerce Minister Piyush Goyal said India would sign the agreement only after securing a framework that provides a comparative tariff advantage for Indian exports over competing countries. "We cannot enter a deal with the US until the framework of having a comparative advantage is finalised," Goyal said, adding "India and the United States are very ‌close ⁠to ⁠finalising a trade deal". During his address, Gor also highlighted the US Mission's investment achievements in India, saying it had helped secure 20.5 billion dollars in new investments into the United States this year. Highlighting the competition among US embassies to attract investment, Gor contrasted the figures achieved by the mission in New Delhi with those reported by several European embassies. "You have these beautiful embassies in Europe, and they come up on stage, and they say 'We're proud to announce five hundred million dollars', 'We're proud to announce seven hundred million dollars'," Ambassador Gor stated. "Our embassy in New Delhi, this year, was very proud to announce that we brought in twenty-five billion dollars in new investment."

Sergio Gor said the trade deal was briefly delayed by a Supreme Court intervention but regained momentum after Jamieson Lee Greer's New Delhi visit, with most of the agreement now complete.

India-US trade deal in final stages: US envoy says talks are down to the last 1 or 2%

Melania Trump attends 'Happiness class', receives a traditional tilaka | WION News | World News Melania attended happiness classes at Sarvodaya Co-Educational Senior Secondary School, an educational program implemented by the Delhi government for students first through eight grades.

Melania Trump attends 'Happiness class', receives a traditional tilaka

US First lady MelaniaTrump reaches Delhi govt school | WION News | World News Prime Minister Narendra Modi and US President Donald Trump held talks at the Hyderabad House. Meanwhile, US First Lady Melania Trump is attending 'Happiness Class' programme at a Delhi school.

US First lady Melania Trump reaches Delhi govt school

Prime Minister Narendra Modi leads US President Donald Trump and the First Lady Melania Trump, into the Hyderabad House where the two world leaders are scheduled to hold talks on business.

PM Narendra Modi receives Donald Trump and Melania Trump at Hyderabad House

US President's Donald Trump two-day India visit is not just about theatrics but India and US are also looking at signing pacts in areas of defence deals, intellectual property rights, nuclear power cooperation, homeland security etc. Watch report:

What will be the outcome of Modi-Trump meet, Trade, Defence and much more

Melania attended happiness classes at Sarvodaya Co-Educational Senior Secondary School, an educational program implemented by the Delhi government for students first through eight grades. Post happiness Curriculum, #FLOTUS interacts with the students and told that 'it's her first visit to India and she is very delightful for such a warm welcome'

Melania Trump interacts with school students post 'Happiness Class' | FLOTUS Speech

FLOTUS appreciates Delhi govt's 'Happiness Curriculum' | WION News | World News Melania attended happiness classes at Sarvodaya Co-Educational Senior Secondary School, an educational program implemented by the Delhi government for students first through eight grades.

FLOTUS appreciates Delhi govt's 'Happiness Curriculum'

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