Photo: Shariquejamalworld / Wikimedia Commons, CC BY-SA 4.0
The interim trade agreement between India and the United States will be finalised only after taking into account how circumstances have shifted since the two sides announced a framework in February, Union Commerce and Industry Minister Piyush Goyal said in New Delhi on Saturday, October 10. He was speaking at the 121st annual session of the industry chamber PHDCCI.
It was announced in February. Some circumstances have changed; the final decision will be made keeping that in mind.
Piyush Goyal, Union Commerce and Industry Minister (translated from Hindi)
What has changed
Goyal did not spell out which circumstances he meant. But the shifting tariff landscape in the US has reopened negotiations on the first phase of the bilateral trade agreement (BTA) that the two countries have been working on. India’s main aim is to secure lower tariffs for its exports to the American market than its competitors face.
Earlier this month, Goyal met US Trade Representative Jamieson Greer on the sidelines of the G20 trade ministers’ meeting in Milwaukee, where the two discussed issues linked to the pact.
A crowded trade agenda
The minister said India is negotiating with a long list of partners at the same time. Among them:
- Israel, Chile and the Gulf Cooperation Council (GCC)
- the Russia-led Eurasian Economic Union (EAEU)
- Canada, where he said talks are now moving faster
- Mexico, with formal talks due to begin next week
- the South Africa-led Southern African Customs Union (SACU), with talks to start soon
The trade ministers of the United Kingdom and Canada are both expected in India next week. The UK minister will attend a meeting of the India-UK Joint Economic and Trade Committee (JETCO). The trade agreement between India and the UK came into force in July.
Swipe at the Opposition
Goyal also used the event to attack Congress leader Rahul Gandhi over his remarks after an INDIA bloc delegation met President Droupadi Murmu on Friday evening and handed her a memorandum on the alleged “vote chori”. Gandhi had said he was shocked that the President did not deny the allegation of election theft. Goyal called this objectionable, said Gandhi had insulted the President, and accused Opposition leaders of misbehaving with security personnel.
Why it matters
The terms of the interim deal will shape how competitive Indian goods are in the American market against those of rival exporters, which is why India has pressed for lower tariffs than its competitors get. Goyal’s remarks signal that the February framework is not the final word and that the agreement could change before it is signed. Meanwhile, the number of parallel negotiations he listed shows the government is pursuing several new markets at the same time.
