Future Of Trade Deal With US Hinges On Preferential Tariff Terms, Says Piyush Goyal

Washington: Commerce and Industry Minister Piyush Goyal has said it will announce the India-US Bilateral Trade Agreement (BTA) only after Washington agrees to offer India preferential tariff terms over its competitors, pointing to a key sticking point in protracted negotiations between the two countries."As soon as the US is able to give us the preferential rate in comparison to our competition, we will finalise the BTA and announce the final details," Goyal said at a national workshop on leveraging free-trade agreements. The minister pointed out that India is seeking a tariff treatment similar to what the US gives to its competitors, including Vietnam and Bangladesh, with rates either better or reduced to zero."We have to see the rate that Vietnam pays in another country and what Bangladesh goods are charged. Our rates will be better," he said. On free trade agreements (FTAs) already operational and those coming into force, the minister said an ambitious target had been taken for the current year. He added that India had secured a good deal in all nine FTAs finalised to date, including those with the UK, New Zealand, and the European Union.The remarks came at a time when India is seeking to balance its longstanding trade ties with Iran and Russia while also maintaining its relations with the United States. Washington and New Delhi signed the announced finalisation of the framework for the first phase of the deal in February, but changes in the tariff landscape in the US under the Donald Trump administration have dragged out further negotiations between the two countries.The US has imposed an additional 10 per cent tariff on several countries, including India, from July 24 after the US Supreme Court struck down its unprecedented reciprocal duties as unconstitutional.