Desk Report,
India’s Commerce Minister says ‘great progress’ in signing trade deal with US
India’s Commerce Minister Piyush Goyal has said that there is “tremendous progress” in the negotiations on a trade deal between India and the United States. He told reporters after signing a free trade agreement with the United Kingdom in London on Thursday. He is so optimistic even after multiple deadlines for signing the agreement between the United States and India have passed.
India’s Commerce Minister says ‘great progress’ in signing trade deal with US
US President Donald Trump has already said that the trade deal must be signed by August 1, otherwise high tariffs will be imposed on their products.
Trump announced the imposition of 26 percent tariffs on Indian goods on April 2 this year. Later, it was temporarily suspended and the deadline for signing the agreement was extended to July 9. Then it was extended to August 1. In the meantime, Indian representatives have visited the United States several times. But the agreement is no longer being made due to various reasons, including access to agricultural products.
Trump also recently indicated that the United States and India are “very close” to an interim agreement. The two countries want to reach a full bilateral agreement by this year.
In an interview with Reuters, Goyal said, “Trade talks with the United States are progressing well. I am optimistic about building a meaningful and fruitful partnership.”
When asked about the US’s demand for lower tariffs on agricultural and dairy products, one of the most complex issues in the agreement, Goyal said, “The issues of negotiation remain in the negotiating room.” However, he said that if small sector-wise agreements are possible, then India can also walk the path of a full agreement.
Goyal also told Bloomberg that he believes that the agreement will be signed before the deadline. However, there is still uncertainty about how the long-standing contentious issues will be resolved.
For many years, the United States has been seeking more market access in India’s agricultural sector. According to them, this sector is still large as an open market; but India has always protected this sector, keeping in mind the issue of food security and the livelihood of millions of farmers.
The US and India are each other’s largest trading partners. Bilateral trade between the two countries has grown to $190 billion. Modi and Trump want to increase this figure to $500 billion.
India has already reduced tariffs on some products like bourbon whiskey and motorcycles. However, it still has a $45 billion trade deficit with India; the Trump administration has taken a tough stance to reduce this deficit.
