India Sets Tariff Condition For US Trade Deal, Seeks Better Rates Than Vietnam, Bangladesh

India has set a condition for the India-US Bilateral Trade Agreement (BTA), demanding tariff concessions that would make Indian exports more favorable than those of competing countries like Vietnam and Bangladesh, Commerce and Industry Minister Piyush Goyal announced. Goyal's remarks unveiled a substantial obstacle previously delaying trade negotiations between New Delhi and Washington.

He stated that India will finalize the BTA and release the final details only when the US offers preferential rates comparable to those granted to competing exporters such as Vietnam and Bangladesh, ensuring their rates are either more favorable or reduced to zero. Goyal emphasized that Indian products should receive better rates, adding, "We have to see the rate that Vietnam pays in another country and what Bangladesh goods are charged.

Our rates will be better." The minister's comments pertain to India's various free trade agreements (FTAs), both existing and those set to become operational, with the government aiming to achieve ambitious terms this year. Notably, India has secured favorable terms in all nine FTAs it has signed so far, including with the UK, New Zealand, and the European Union.

However, the ongoing trade talks face challenges due to shifts in the US tariff regime under President Donald Trump, which culminated in an additional 10 percent tariff on imports from several countries, including India, following a US Supreme Court ruling that invalidated the administration's unilateral tariffs as unconstitutional.