India-US Trade Agreement Conditional on Tariff Advantage, Says Piyush Goyal

Union Commerce Minister Piyush Goyal has emphasized that the anticipated trade agreement between India and the United States will only come into effect once the US guarantees a distinct tariff advantage for India over its global competitors. Speaking at the India Global Forum held in London, Goyal detailed that both nations had reached an initial consensus on the deal earlier this year in February, yet its actual implementation hinges on defining a “competitive advantage” for India in comparison to nations including Vietnam, Thailand, the Philippines, Indonesia, Malaysia, China, Bangladesh, and Sri Lanka.

Goyal highlighted the importance of the US finding the right mechanisms and legal frameworks to facilitate this tariff advantage. He stated, “The day that happens, the deal is on,” underscoring the urgency and significance of this condition. The minister reiterated that the discussions have been focused on significantly lowering tariffs from the current rate of 50% down to 18%, which he believes would provide India with a competitive edge in various sectors against other countries in the region.

He pointed out that India’s tariffs, once reduced, would be lower than those of its neighbouring countries as well as most ASEAN nations, with the exception of Singapore. This tariff reduction is seen as a critical factor that makes the trade deal particularly appealing to India, as it aims to boost the country’s exports and strengthen its economic standing on the global stage.

Furthermore, Goyal mentioned recent adjustments in the US tariff system following a ruling by the US Supreme Court, as well as the introduction of a temporary 10% tariff that is set to expire on July 24. These developments necessitate further negotiations to ensure that the final terms are beneficial for India. The minister’s statements underscore the complexities involved in international trade negotiations, especially in a global economy that is increasingly competitive.

The trade agreement, once finalized, holds the potential to significantly impact bilateral trade relations between India and the USA, fostering economic growth and creating opportunities for various sectors in India. As both nations work towards solidifying this deal, the focus remains on ensuring that India emerges with a favorable position in the ever-evolving landscape of global trade.

Source: scroll.in