No trade deal with US until India gets competitive edge
Summarized by AI; it may make mistakes. Check important info
Summarized by AI; it may make mistakes. Check important info
India will not enter into a trade agreement with the United States until it secures a competitive advantage over other countries with similar cost structures and development levels, Commerce and Industry Minister Piyush Goyal said on Thursday after concluding discussions with US Trade Representative Jamieson Greer.
Speaking at the India Global Forum in London, Goyal said India must have a clear reason to bring the agreement into force and ensure that it gains an advantage over competing nations such as Vietnam, Thailand, the Philippines, Indonesia, Malaysia and China.
India seeks edge
“We obviously have to have some reason to be able to enter into force that agreement that we have already agreed upon, and to ensure that we get a competitive advantage over what is being paid by countries in the same stage of development, or same cost structures as India,” Goyal said.
He added that India and the US are currently discussing how Washington can provide New Delhi with a competitive edge through appropriate tools and legal mechanisms.
“Until the framework of getting that competitive advantage can be finalised, we can't enter into force a US deal. The day that happens, the deal is on,” Goyal said.
Earlier talks
India and the United States had issued a joint statement on February 7, agreeing on a framework for an interim trade agreement aimed at delivering mutual benefits. However, the two countries are yet to finalise the first phase of the proposed trade pact.
According to Goyal, the February 7 framework was based on the 50% reciprocal tariff imposed by the US at that time. He said that after the US Supreme Court struck down President Donald Trump’s reciprocal tariffs, negotiations had to be reworked to focus on securing preferential market access for India.
A day earlier, after meeting US Trade Representative Jamieson Greer, Goyal said negotiations on the interim trade agreement were progressing in a “constructive and forward-looking manner”.
What to expect
On June 5, the minister had expressed confidence that India and the US could conclude the first tranche of the proposed trade agreement by mid-July.
According to the Commerce Ministry, Goyal and Greer conducted a comprehensive review of key elements of the bilateral trade agreement during their latest discussions. The talks covered enhanced market access, digital trade, supply chain resilience, reduction of non-tariff barriers and expanded cooperation in strategic sectors.
