India and the US have agreed to give Indian goods preferential market access in the American market, with lower duties than those imposed on competitor nations, Commerce and Industry Minister Piyush Goyal said on Sunday.
"This was already agreed between the leaders - President (Donald) Trump and Prime Minister Narendra Modi when they announced that we have both come to a broad framework agreement a few months ago and it has been acknowledged that India will get preferential trade access in the US with lower duties than our competitor countries," Goyal replied to a question from a reporter.
India and the US finalised the framework for the first phase of the agreement in February.
The deal was expected to be signed earlier, but changes in the US tariff landscape have led to further negotiations. The extent of the tariff advantage for Indian goods will depend on the framework eventually agreed upon.
Goyal is in Egypt on a two-day visit to discuss ways to boost trade and investment between the two countries.
An official recently stated that the US has assured India of a comparative tariff advantage over competing countries under the proposed BTA, with both sides working to conclude the first tranche by the end of the current financial year.
"We will have to see how the tariff framework unfolds. We are working towards closing the first tranche by the end of this financial year. Talks are going for the first tranche and the broader BTA," the official said last week.
After the US Supreme Court struck down Trump's reciprocal tariffs, which formed the basis of the negotiations, the US is using alternative mechanisms under provisions of the Trade Act to put a new tariff architecture in place.
(With inputs from PTI)
