Commerce and Industry Minister Piyush Goyal on Thursday said India was negotiating one of the “best” trade deals with the US, asserting that the agreement would secure favourable market access for Indian goods.
“We have negotiated a very good set of outcomes with the US. And in every respect, India will have one of the best deals with the US,” Goyal told reporters.
India and the US had finalised a framework for the first phase of their bilateral trade agreement (BTA) in February. However, changes in the US tariff regime have necessitated further negotiations.
Goyal said India would secure preferential market access for products of its interest compared with countries producing similar goods and having comparable levels of development.
“Nations that make the same products and are at a similar level of development, like India. We will have the most preferred market access in the US post the deal in products of our interest,” he said.
Asked about the timeline for concluding the agreement, the minister said discussions were ongoing and several factors would determine the outcome.
He said the recent visit by a two-member US delegation was primarily focused on discussions with Indian customs authorities. The Deputy Chief Negotiator had visited to discuss one track of the negotiations concerning customs-related issues, he added.
On the potential impact of the trade agreement on Indian exports, Goyal said it was too early to assess the gains, as the India-EU trade agreement was yet to become operational and the US pact would also take time to come into effect.
He also said Guatemala and Ecuador had expressed interest in negotiating separate trade agreements with India, describing the country as a trusted global trade partner.
“India today is looked upon as the trusted partner of the world. Otherwise they would not be wanting to do trade agreements with India. They would not be looking to India as a part of their global value chains,” he said.
The two sides remain in regular contact to finalise the first phase of the BTA, with India seeking lower tariffs for its goods in the US market compared with competing nations such as Bangladesh, Vietnam and Cambodia.
Asked whether the results of the US midterm elections, in which President Donald Trump suffered a major setback, would affect the trade negotiations, Goyal said India did not link trade relations with domestic political developments in other countries.
“We do not link our trade relations with internal elections or results of any kind,” he said.
The US has imposed an additional 10 per cent import duty on several countries, including India, from July 24, following an investigation into forced labour issues under Section 301 of the US Trade Act of 1974. The duty is over and above the existing most-favoured-nation (MFN) tariff rates.
On concerns surrounding the implementation of the India-UK trade agreement, particularly the issue involving whiskey, Goyal said operational issues often arise when new agreements come into force and that the matter was being resolved.
(With inputs from PTI)