Fabulous negotiations: Piyush Goyal hints at India-US trade deal announcement soon

Piyush Goyal said India-US trade negotiations were smooth, with only a few issues unresolved. He expects the pact to secure highly favourable American market access for Indian products.

In Short

• India-US trade talks progressing smoothly with few issues left
• Announcement on bilateral deal expected soon
• Deal to offer India strong market access in US

Commerce and Industry Minister Piyush Goyal on Thursday said negotiations between India and the United States for a bilateral trade agreement were progressing smoothly, with only a few issues left to be resolved. He indicated that an announcement on the deal could come soon, adding that India was working towards securing one of the "best" trade agreements with Washington.

"We are having a fabulous negotiation with the US. They are an important partner for us in trade and defence, and we share a multi-dimensional relationship. The negotiations are smooth and friendly, with no obstacles. There are just a few issues left, which we are sorting out. You could hear an announcement soon," Goyal told Business Today in an on-camera interaction.

The minister also expressed confidence that the proposed agreement would give India favourable access to the American market, saying the country had negotiated a strong set of outcomes.

"And in every respect, India will have one of the best deals with the US," he said.

Goyal said India expected to secure highly favourable market access in the US for products in which it had a strong interest, particularly when competing with countries at similar levels of economic 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.

INDIA-US TRADE TALKS CONTINUE

India and the US had finalised a framework for the first phase of their bilateral trade agreement in February. However, changes in the US tariff landscape have necessitated further negotiations before the pact can be concluded.

A two-member team of US officials visited India earlier this month for discussions on trade and customs facilitation. Goyal said the visit primarily involved engagement with Indian customs authorities.

"The Deputy Chief Negotiator had come for discussions with the customs department on one track," he said.

Asked whether the recent US midterm election results would affect the pace of trade negotiations, Goyal said India did not link its 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) tariffs.

INDIA EMERGING AS TRUSTED TRADE PARTNER

Goyal also said countries were increasingly looking at India as a reliable trade and investment partner, pointing to interest from Guatemala and Ecuador in negotiating separate trade agreements with New Delhi.

"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.

On the impact of India's existing trade agreements on exports, the minister said it was too early to assess the results, as some of the major pacts had yet to become operational.

He specifically referred to the proposed India-European Union trade agreement, describing it as the "mother of all deals", and said its impact would take time to materialise.

Goyal also addressed concerns over an operational issue related to whisky under India's trade agreement with the United Kingdom, saying such matters could arise when new agreements came into effect.

"Whenever there is any new agreement, there are some operational issues. Probably this is one of those which is being sorted out," he said.

- Ends
With inputs from PTI