Good news regarding the proposed trade agreement between India and the US may be forthcoming, as negotiations between the two countries appear to have reached a final stage. The Union Minister of Commerce and Industry, Piyush Goyal, stated on Thursday that discussions on the agreement are proceeding in a very favorable atmosphere, with only a few issues remaining to be resolved. He hinted that the deal's announcement could happen in the near future.
Piyush Goyal emphasized that India will conclude one of the best trade agreements with the US, considering its interests. Meanwhile, former senior US diplomat Nisha Biswal expressed hope that both countries might attempt to finalize the first phase of the trade agreement by the G20 summit, scheduled for Florida next month. However, she acknowledged that the economies of both nations are complex, and reaching consensus on certain key issues will not be simple.
In an interview with Business Today, Piyush Goyal noted that India's negotiations with the US are progressing excellently. He added that the US is an important partner for India in the fields of trade and defense, and strong ties exist between the countries at many levels. According to Goyal, communication is taking place in a relaxed and friendly atmosphere, and there are currently no serious obstacles. In his view, some aspects related to the agreement remain, which both sides are actively addressing. He stated: 'You may hear the announcement of this agreement in the near future.'
Piyush Goyal reported that India has conducted active negotiations to achieve more favorable terms within this agreement. He expressed hope that India will gain highly favorable access to the American market for its key products. Goyal believes that India should receive better market access compared to other countries producing similar products and at a similar level of economic development. He said that after the agreement is signed, India could obtain the most preferential market access in the US for goods of interest to it.
Nisha Biswal, former Assistant Secretary of State for South and Central Asia, also expressed optimism about the trade deal. In an interview with an Indian news agency, she said there is a desire to conclude the first phase of the agreement between the two countries by the G20 summit, which will take place in Florida, USA, on December 14 and 15. President Donald Trump will chair this summit.
According to Nisha Biswal, trade negotiations between the countries are complex, and there are many issues requiring further discussion. She specifically mentioned the textile sector. India wishes to secure better market access in the US compared to its competitors. Biswal noted that it would be a challenging task for the American administration to implement this demand from India within existing trade rules.
The framework for the first phase of the Bilateral Trade Agreement was defined by India and the US in February of this year. This agreement was reached following telephone talks between Prime Minister Narendra Modi and US President Donald Trump. However, subsequent changes in US tariff policy forced both countries to resume negotiations. In the same month, a two-member team of American officials arrived in India. This group discussed trade and customs issues with Indian representatives. Piyush Goyal mentioned that the deputy chief negotiator of the American team held a separate dialogue with the Indian Customs Department on a specific matter.
When asked how the results of the recent US midterm elections would affect the pace of trade negotiations, Piyush Goyal replied that India does not link its trade relations to the domestic elections or political events of other countries. He stressed that India determines trade ties independently of internal elections or their outcomes in any country. Goyal noted that many countries around the world now view India as a reliable partner in trade and investment. He cited Guatemala and Ecuador as examples, which are showing interest in concluding separate trade agreements with India.
He added that if India were not a reliable partner, other countries would not show interest in entering into trade agreements with it or including it in their global value chain. Piyush Goyal called the trade agreement between India and the European Union (EU) the 'mother of all deals.' Nevertheless, he stated that it is premature to assess how India's current trade agreements have impacted exports. Some major agreements have not yet come into full force. Regarding the trade agreement with the UK, Piyush Goyal mentioned that practical difficulties related to the operational issue of whiskey may arise upon the new agreement coming into effect, and these are in the process of being resolved.
One of the important issues in the trade-US negotiations is also US tariff policy. The US introduced a 10% additional import duty on products from many countries starting July 24.
