India-US trade deal hinges on preferential tariff advantage over rivals, says Goyal
India is set to wrap up its trade negotiations with the United States shortly. A crucial aspect of this deal includes securing preferential tariffs to outperform its rivals. The minister emphasized that the accord will not undermine any Indian sensitivities. Meanwhile, India is also engaging in discussions for trade agreements with multiple countries to boost the international availability of…
New Delhi: Commerce and industry minister Piyush Goyal has clarified that India will finalize its proposed trade deal with the US only if Washington grants India a preferential tariff advantage compared to other economies. Speaking at an outreach program on India's trade deals, Goyal stated that the bilateral trade agreement (BTA) will be finalized and finalized details announced once the US provides the preferential rate.
At the 66th SIAM Annual Convention, Goyal emphasized that no Indian sensitivity has been compromised in the proposed BTA, ensuring protection for farmers, fishermen, MSMEs, workers, handloom and handicraft sectors, and the auto industry. He also mentioned that the current deal is an interim pact and India will continue engaging with the US.
India's exports reached $317 billion in the April-July period, up around $36-37 billion compared to the same period last year, and shipments in August seem promising. Goyal plans to visit the US in late September to attend the G20 Trade Ministerial and hold bilateral talks with USTR Jamieson Greer, with trade pact discussions expected to be a key topic.
India aims to secure more trade agreements with countries such as Canada, Mexico, Israel, Chile, Mercosur, the Southern African Customs Union, the Gulf Cooperation Council, ASEAN, Korea, and Japan, aiming to gain access to 75% of global trade at lower rates than competitors. Goyal noted that the US and EU have different trading patterns and costs, requiring India to ensure its tariff rates under trade agreements are better or zeroed out compared to competitors.
Commerce secretary Rajesh Agarwal cautioned exporters about the limited window of opportunity offered by these FTAs, urging them to capitalize on the benefits while they are available, as competitors may soon establish similar trade pacts.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
