India Says US Trade Deal Hinges on Preferential Tariff Advantage
New Delhi — India will finalize a bilateral trade agreement with the United States once Washington offers Indian exporters a preferential tariff advantage over competing countries, Commerce and Industry Minister Piyush Goyal said Thursday.
Speaking at the National Workshop on “Leveraging FTAs: An Outreach Programme,” Goyal said India had secured favorable terms in all nine free trade agreements finalized so far.
He said the agreements had been structured as win-win arrangements while protecting sensitive sectors, including farmers, fishermen, small businesses and workers. He also pointed to pharmaceuticals, textiles, processed foods and agricultural products as areas where India had secured favorable outcomes.
Goyal said the proposed U.S.-India bilateral trade agreement would be finalized once the United States was able to provide India with a preferential tariff rate compared with its competitors. The remaining details would then be announced, he said.
The minister also highlighted India’s expanding network of trade agreements.
He said agreements with Mauritius, Oman, the United Arab Emirates, Australia and the United Kingdom were already in effect, while the agreement with the four-member European Free Trade Association was also expected to become operational. Trade arrangements with New Zealand and the 27-member European Union were expected to follow.
Goyal said India had set an ambitious export target for the current year and that trade performance so far remained encouraging.
Exports during the first four months of the year reached about $317 billion, up from approximately $280 billion during the same period last year, representing an increase of about $36 billion to $37 billion.
He said exports typically accelerate ahead of the Christmas season and tend to peak during the January-to-March quarter, adding that the current trajectory was a positive sign.
Preliminary August figures also suggested India remained on course, Goyal said.
The government plans to expand the country’s export basket, bring more companies into international trade and help smaller exporters scale their businesses, he added.
Goyal also said policymakers should find ways to support smaller exporters when disruptions around the Strait of Hormuz create difficulties for trade. (Source: IANS)
