Commerce and Industry Minister Piyush Goyal said on Saturday that the interim trade agreement between India and the US will be finalized keeping in view the changed circumstances. The two countries announced in February that they had agreed on a framework for the deal. He also said that trade agreements are being negotiated with several regions, including Israel, Chile, the GCC (Gulf Cooperation Council) and the Russia-led Eurasian Economic Union (EAEU). Addressing members of industry body PHDCCI, Goyal said the US trade agreement was announced in February. Some circumstances have changed. Keeping this in mind the contract will be finalised.

India wants lower tariffs

India wants lower tariffs for its products in the US market than competing countries. The minister did not elaborate on the changed circumstances. However, further negotiations are underway on the first phase of the proposed Bilateral Trade Agreement (BTA) between the two countries due to changes in US tariff policy. Earlier this month, Goyal met US Trade Representative Jamison Greer during the G20 Trade Ministers’ meeting in Milwaukee, USA. Issues related to trade agreements were discussed between the two. He said India is negotiating trade agreements with several countries and regional groupings, including Israel, Chile, the Gulf Cooperation Council (GCC) and the Russia-led Eurasian Economic Union (EAEU).

There have been constant changes since February

India and the US announced in February to finalize the framework for the first phase of the Bilateral Trade Agreement (BTA). Under this, America has removed the 25 percent penalty imposed on India on buying Russian oil and reduced the tariff on India to 18 percent. However, on February 20, the US Supreme Court declared Washington’s retaliatory tariffs invalid under the ‘International Emergency Economic Powers Act’. On February 24, the US imposed a uniform tariff of 10 percent on all countries for 150 days. Goyal said that some circumstances have changed, the final decision will be taken keeping them in mind. India is demanding lower tariffs for its goods than its competitors in the US market. Earlier this month, Goyal met US Trade Representative Jameson Greer during the G20 Trade Ministers meeting in Milwaukee. Both discussed issues related to trade agreements.

Export figures remained ‘good’ till September

Goyal said that the trade ministers of UK and Canada will visit India next week. India and the UK entered into force a trade agreement in July. The UK ministers will be here for a meeting of the India-UK Joint Economic and Trade Committee. He said negotiations for a trade agreement with Canada were progressing rapidly and negotiations for an agreement with the South African-led SACU bloc would begin soon. Talks are also underway for trade agreements with Israel, Chile, the Gulf Cooperation Council and the Russia-led Eurasian Economic Union, among others.

Goyal said that today when FTA (Free Trade Agreement) is done, it is not done in government offices. Discussions are being held with the industry. Communicates with farmers. The minister said the export figures till September were “good”. He said that you will be very satisfied when you hear this. And your confidence to export 1 trillion dollars this year will double.

During Covid when the country was not getting vaccines from abroad, India gave the example of making its own vaccine saying that informally, they (developed countries) almost decided that they don’t need to give (vaccines) to India and developing countries. However, India supplied vaccines to many countries and became a reliable partner.