India-US trade deal almost ‘done and dusted’, says Piyush Goyal

Commerce and Industry Minister Piyush Goyal said on Thursday that the India-US trade pact is almost "done and dusted" and will be executed once Washington gives New Delhi the right competitive advantage over its competitors in the American market.

Speaking at an event organised by the Public Affairs Forum of India in New Delhi, Goyal said India has finalised nine free trade agreements, including “the US, which is almost done and dusted”. Goyal said, "We just have to find the right comparable competitive advantage over our competitor so that we can quickly execute the agreement."

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India and the US had in February announced the finalisation of the framework for the first phase of the bilateral trade agreement, but changes in the tariff landscape in the US have led to further negotiations. He added that India was expanding its network of FTAs at a time of uncertainty over tariffs and non-tariff barriers, and that the country’s trade agreements would eventually provide preferential access to markets accounting for about 75 per cent of global GDP.

His remarks came ahead of his visit to the US for the G20 Trade Ministerial to be held in Milwaukee, Wisconsin, from September 30 to October 1. Goyal is also scheduled to hold a bilateral meeting with US Trade Representative Jamieson Greer, during which progress in the negotiations for the pact is expected to be discussed.

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On the European Union, Goyal said India had secured negotiating gains under the proposed India-EU trade agreement despite new European climate and trade regulations such as the Carbon Border Adjustment Mechanism and deforestation rules.

He said India could have extracted more concessions had the pact been negotiated earlier, before the bloc introduced such regulations, the number of which had risen to 73. He added that when the EU wanted to restrict steel exports, India had secured protections for agriculture and other sectors, a large additional steel quota, and another $500 million commitment on climate finance.

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Goyal also spoke about other trade negotiations. He said talks with Canada were making fast progress after his meeting last week in Mumbai with Canada’s Minister of International Trade Maninder Sidhu. On Mexico, he said the terms of reference had been finalised, the first round of negotiations with the Gulf Cooperation Council is scheduled for October, a Comprehensive Economic Partnership Agreement with Chile may happen soon, while a deal with Peru may not happen because of competition and competitive interests. He also said a trade deal with Israel might take time because of the geopolitical situation.

On China and the Regional Comprehensive Economic Partnership, Goyal said India was not part of the original negotiations and argued that pressure within the government at the time to join would effectively have meant entering into an FTA with China. He said India already had trade pacts with ASEAN, Japan and South Korea, and was then negotiating with Australia and New Zealand, leaving China as the only other country.