London/New Delhi: India will not enter into a trade agreement with the United States unless it secures a clear competitive advantage over rival economies, Commerce Minister Piyush Goyal said on Thursday.
Speaking during a two-day visit to London, Goyal said India would only proceed with the agreement once Washington establishes a legal and policy framework that offers Indian exporters preferential market access compared to competing countries.
“Until the framework for getting competitive advantage is finalised, we cannot enter into a US deal,” Goyal said, adding that discussions are focused on how the US can create the necessary legal backing to provide India with such an advantage.
His remarks come a day after he concluded trade talks in New Delhi with United States Trade Representative Jamieson Greer.
Following the meeting, the commerce ministry said both sides remained committed to expanding bilateral trade and advancing negotiations under the proposed bilateral trade agreement, though it did not indicate any breakthrough on the unresolved issues.
The latest round marked the third set of negotiations since India and the US announced plans for an interim trade pact earlier this year. The agreement was initially negotiated at a time when the US had imposed steep tariffs on Indian goods under the International Emergency Economic Powers Act (IEEPA).
According to Goyal, India had negotiated the deal on the assumption that the effective tariff burden on Indian exports would be reduced from around 50 per cent to 18 per cent, giving Indian products a significant edge over competing economies.
“There were IEEPA tariffs when we finalised the deal. We had about 50 per cent tariff on India, so we had negotiated the deal based on bringing down the 50 per cent tariff to 18 per cent,” Goyal said. He added that the proposed reduction was attractive because it would have provided India with a comparative advantage over neighbouring countries and other competitors.
(IANS)
