India will also get the benefit of zero duty textile export to the US for garments made with US-origin cotton and man-made fibers, like Bangladesh once the trade deal is signed confirmed Commerce Minister Piyush Goyal on Thursday.
“In the final agreement India will also get what Bangladesh got for the yarn and cotton forward. We will also get the same benefit. If a specific cotton or yarn is imported from US and processed in India to be sent back to the US, then it will have the same benefit as Bangladesh,” said Goyal.
There was a growing concern among Indian textile exporters of losing the competitive edge over Bangladesh in terms of tapping US export market after the announcement of US Bangladesh deal.
Under the trade agreement finalized between the US and Bangladesh on February 9, Trump administration agreed to offer zero-duty entry for garments made with US-origin cotton and man-made fibres.
This created some uncertainties amid Indian exporters. Goyal clarified today that India has ensured that the textile exporters could reap the maximum benefit of the deal , while the interests of the Indian cotton farmers also remain protected. “And no Indian cotton farmer will be impacted as well because US produce limited quantity of cotton and their total cotton export is of $5 billion. We aim to make $50 billion textile exports to the US,” added Goyal.
He asserted that India has ensured that Indian textile exporters have to pay the lowest duty of 18% on the cotton imports from the US. India US trade deal is likely to be signed by the mid of March.