New Delhi, 26 June (H.S.):
Union Commerce and Industry Minister Piyush Goyal said on Thursday in London that India will not implement a trade agreement with the United States unless it secures a tariff advantage over competing economies. While stating that India and the US are very close to concluding a trade deal, Goyal made it clear that New Delhi would not sign the agreement without preferential tariff treatment compared to its global competitors.
Addressing the India Global Forum (IGF) UK-India Week in London, Goyal said India wants clarity on how it will maintain its competitive edge over other manufacturing economies before moving ahead with the trade agreement.
He said, We have to ensure that we receive a competitive advantage over countries that are at a similar stage of development or have cost structures comparable to India's. Whether it is Vietnam, Thailand, the Philippines, Indonesia, Malaysia, China, Bangladesh, Sri Lanka or our neighbouring countries, India must have a preferential position.
Meanwhile, Mukesh Aghi, President and Chief Executive Officer (CEO) of the US-India Strategic Partnership Forum, said the issue is not merely technical. He said India's position has consistently been that it requires preferential tariff treatment, meaning lower tariffs than those imposed on neighbouring countries, to remain globally competitive.
Aghi said the debate is not about whether tariffs are set at 10 per cent or 20 per cent, but rather about ensuring India enjoys lower tariff rates than its competitors. He added that the issue has also acquired political significance because India currently faces a tariff of 12.5 per cent, while Pakistan is subject to a 10 per cent tariff. According to Aghi, no Indian political party or leader would be willing to accept such a disparity, as it could carry serious political consequences.
He further said that the issue would have to be resolved and expressed confidence that the Trump administration would examine possible solutions that would be mutually beneficial for both India and the United States.
Earlier this week, India and the United States held a two-day ministerial meeting at Vanijya Bhawan in New Delhi to review the key elements of the proposed Bilateral Trade Agreement (BTA). The meeting was attended by Union Commerce and Industry Minister Piyush Goyal and a delegation led by United States Trade Representative Ambassador Jamieson Greer.
Notably, both sides held extensive discussions on finalising the negotiations before the expiry of the temporary 10 per cent tariff imposed by the United States on all its trading partners on February 24. The temporary tariff measures are scheduled to expire on July 24. The framework for the proposed Bilateral Trade Agreement was announced earlier this year in February.
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Hindusthan Samachar / Jun Sarkar
