US trade deal to take effect only when India secures tariff advantage over competitors: Piyush Goyal

Union Commerce Minister Piyush Goyal on Thursday said that a trade deal between India and the United States will only take effect once Washington ensures a clear tariff advantage for New Delhi over competitors.

Speaking at the India Global Forum in London, Goyal said the agreement had already been agreed to by both sides in February, but its implementation depends on finalising a “competitive advantage” for India compared with countries such as Vietnam, Thailand, the Philippines, Indonesia, Malaysia, China, Bangladesh and Sri Lanka.

Goyal added that the US must find appropriate tools and legal backing to ensure this outcome. “The day that happens, the deal is on,” he added.

The commerce minister said that the negotiations between the two countries had centred on reducing tariffs to 18% from 50%, which he described as creating an advantage for India over several competing economies.

“We were lower than all our neighbouring countries, lower than all the ASEAN [Association of Southeast Asian Nations] countries other than Singapore,” Goyal said. “And that is why the deal was attractive for us.”

He added that with changes in the US tariff system following a US Supreme Court ruling and the introduction of a temporary 10% tariff that expires on July 24, further work was needed before the bilateral...

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