Govt reveals when it will seal India-US deal: ‘Waiting for comparative tariff advantage’
Commerce Minister Piyush Goyal stated that India is waiting for the US to offer a favorable tariff structure before finalizing an interim bilateral trade agreement. India has successfully concluded several other trade deals recently but remains cautious about the specific terms of the US deal.
Why it matters
Trade negotiations between the world's two largest democracies have significant implications for global supply chains and economic policy.
The government is focused on maximising the utilisation of free trade agreements (FTAs) after securing preferential access to two-thirds of the global market through nine trade deals, commerce minister Piyush Goyal said on Thursday, even as India is on course to forge several more FTAs with major economies such as the US, Canada and Chile.India-US trade deal awaits tariff advantageGoyal, who is scheduled to visit the US later this month, said finalisation of the interim bilateral trade agreement (BTA) with Washington awaits a tariff structure that gives India a comparative advantage over its competitors.India and the US finalised a framework for an interim BTA on February 2, but an agreement could not be signed after the US Supreme Court invalidated the legal basis for the preferential tariff Washington had offered.“As soon as the US is able to give us the preferential rate in comparison to our competition, we will finalise…
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