India Sets Tariff Condition for US Trade Deal
India will finalise its proposed interim trade agreement with the United States only after Washington offers a tariff structure that gives Indian exporters a clear competitive advantage over rival countries, Commerce and Industry Minister Piyush Goyal has said. The framework for the agreement has already been settled, but tariff terms remain unresolved.
India Waits for Preferential US Tariff Rate
Goyal said India and the US finalised the framework for an interim Bilateral Trade Agreement on February 2. However, the pact could not subsequently be signed after the US Supreme Court invalidated the legal basis for the preferential tariff arrangement Washington had proposed.
He said New Delhi would conclude the agreement once the US was able to provide India with a preferential rate compared with competing exporting nations.
Goyal to Visit US for Further Trade Talks
Goyal is scheduled to visit the United States later this month, with the pending bilateral trade agreement expected to remain a major focus.
India is seeking commercially meaningful tariff advantages rather than merely signing an agreement that leaves its exporters facing rates similar to or higher than competitors.
Trade uncertainties also remain after the US imposed tariffs on several labour-intensive Indian products and opened another trade investigation that could result in additional duties.
India Expands Global Free Trade Network
Goyal said India has concluded nine trade agreements under the Modi government, providing preferential access to roughly two-thirds of the global market.
India is also pursuing agreements with Canada, Mexico, Chile, the Gulf Cooperation Council, Israel and other partners, while reviewing existing arrangements with ASEAN, South Korea and Japan.
The government ultimately aims to secure preferential access covering around 75% of global trade.
