India-US trade deal: Commerce Minister Piyush Goyal on Friday made it clear that any trade deal with America would only happen when it is a win-win situation for both the countries. Asked about US President Donald Trump’s July 9 deadline, Goyal said India does not do trade deals with deadlines in mind. Goyal’s comments assume significance at a time when both India and the US are looking to finalise an interim trade deal before next week.“India never makes a trade deal based on a deadline or timeline; when the deal is good, fully matured, and in the national interest, then we accept it,” he said.“India discusses on its own terms, discussions are ongoing with various countries. Whether it is the European Union, New Zealand, Oman, the United States, Chile, or Peru, negotiations for agreements are underway with many countries,” Goyal said.“A free trade agreement happens only when there is mutual benefit. When the deal is made while safeguarding India’s interests, keeping in mind that national interest will always remain paramount, then India is always ready to make deals with developed countries,” he added.Also Read | ‘Reserve the right to suspend…’: Amidst trade deal talks, India proposes retaliatory duties against US at WTO; here’s what the issue is about
India-US Trade Deal Status
- A delegation from India has returned from Washington following discussions about the interim trade agreement, which is expected to be concluded before July 9. However, negotiations are ongoing as certain matters in agriculture and automotive sectors require further resolution, an official told PTI.
- The Indian delegation conducted negotiations in Washington regarding an interim trade agreement with the United States from June 26 – July 2. The delegation was headed by chief negotiator and special secretary in the commerce department, Rajesh Agrawal.
- The official indicated that negotiations are in their final stages, with an announcement anticipated before July 9, coinciding with the conclusion of the 90-day suspension period of Donald Trump-era tariffs affecting various countries, including India.
- The official said: “Indian team is back from Washington. Negotiations will continue. There are certain issues which need to be resolved in agriculture and auto sectors.”
What India & US Want
The United States implemented an additional 26 per cent reciprocal tariff on Indian products on April 2, though it was suspended for 90 days. The baseline 10 per cent American tariff continues to be effective. India seeks complete relief from the supplementary 26 per cent duty.India’s requests include duty concessions for its labour-intensive industries, encompassing textiles, gems and jewellery, leather products, garments, plastics, chemicals, shrimp, oil seeds, grapes and bananas within the suggested trade agreement.In the agricultural domain, the United States seeks reduced duties on products including dairy items, apples, tree nuts, and genetically modified crops.Given the political sensitivities surrounding agriculture, India faces significant obstacles in offering any duty reductions in this sector. The dairy sector in India remains protected, with no concessions granted to any trading partners in existing free trade agreements.Also Read | India-US trade deal: What’s the deadlock about? Top issues blocking agreement as Donald Trump’s 26% tariff deadline loomsIndia has strengthened its stance against providing duty concessions for American agricultural and dairy products.The United States is requesting duty reductions on specific industrial products, including automobiles (particularly electric vehicles), wines and petrochemical items.Both nations aim to finalise discussions for the initial phase of the proposed bilateral trade agreement (BTA) by fall (September-October) this year. The agreement targets increasing bilateral trade to $500 billion by 2030, up from the present $191 billion. An interim trade agreement is being pursued before the first tranche.The American delegation visited for negotiations last month.India’s merchandise exports to the United States increased by 21.78 per cent to $17.25 billion during April-May this fiscal, whilst imports grew by 25.8 per cent to $8.87 billion.Also Read | Donald Trump’s tariff wars: US announces trade deal with Vietnam; is India next? Why China should be worried
