India Won’t Sign US Trade Deal Without Competitive Edge: Piyush Goyal
LONDON/NEW DELHI-India will not enter into a trade agreement with the United States unless it secures a clear competitive advantage over rival economies, Union Commerce and Industry Minister Piyush Goyal said on June 25.
Speaking during a two-day visit to London, Goyal said India would proceed with the agreement only after Washington establishes a legal and policy framework that provides Indian exporters with preferential market access over competing countries.
“Until the framework for getting competitive advantage is finalized, we cannot enter into a US deal,” Goyal said. He added that ongoing discussions are focused on how the United States can create the necessary legal backing to secure that advantage for Indian products.
His remarks came a day after he concluded trade talks in New Delhi with United States Trade Representative Jamieson Greer.
Following the meeting, the Ministry of Commerce and Industry said both sides remain committed to expanding bilateral trade and advancing negotiations under the proposed bilateral trade agreement, though no breakthrough was announced on unresolved issues.
The latest round marked the third set of high-level negotiations since India and the United States announced plans for an interim trade pact earlier this year. The agreement was initially negotiated when the United States had imposed steep tariffs on Indian goods under the International Emergency Economic Powers Act (IEEPA).
According to Goyal, India negotiated the proposed agreement on the assumption that the effective tariff burden on Indian exports would be reduced from around 50 per cent to 18 per cent, giving Indian products a significant edge over competing economies.
“There were IEEPA tariffs when we finalized the deal. We had about 50 per cent tariff on India, so we had negotiated the deal based on bringing down the 50 per cent tariff to 18 per cent,” Goyal said.
He said the proposed reduction was attractive because it would have given Indian exports a comparative advantage over neighboring countries and other competing economies. (IANS)
