New scenario, new deal? Goyal on US trade pact

New Delhi: Commerce and industry minister Piyush Goyal clarified that the US-India interim trade agreement framework, announced in February, will be finalized with the evolving circumstances in mind. During a PHD Chamber of Commerce and Industry annual session address, Goyal also announced upcoming talks for trade agreements with Mexico, the UK, Canada, and the South Africa-led SACU group. Talks with Israel, Chile, the Gulf Cooperation Council and the Russia-led Eurasian Economic Union are also in progress.

India and the US finalized a framework for the first phase of their bilateral trade agreement (BTA) in February, eliminating the 25% penalty on India for buying Russian oil and reducing the tariff on India to 18%. However, the US Supreme Court invalidated the reciprocal tariffs under the International Emergency Economic Powers Act on February 20, and the US imposed a blanket 10% tariff on all countries for 150 days on February 24.

Goyal met US Trade Representative Jamie S. Greer on the sidelines of the G20 trade ministers meeting in Milwaukee to discuss trade pact-related issues. While export numbers for September were reported as good, Goyal expressed confidence that India will successfully export $1 trillion this year, doubling the confidence in exports.

He also highlighted India's ability to manufacture its own vaccines during the Covid-19 pandemic when other countries were hesitant to provide vaccines to India and developing nations, positioning India as a trusted partner.