India's Commerce and Industry Minister Piyush Goyal stated on Thursday that a comprehensive trade agreement between India and the United States is nearing finalization. Speaking at an event in New Delhi, Goyal described the pact as 'almost done and dusted,' pending Washington's decision to grant India a competitive advantage over rival nations in the American market.
Goyal emphasized India's strategic expansion of its Free Trade Agreement (FTA) network amidst global uncertainties regarding tariffs and non-tariff barriers. He noted that these agreements are projected to eventually provide India preferential access to markets accounting for approximately 75 percent of global GDP.
Negotiations and Upcoming Meetings
The minister's remarks precede his visit to the US for the G20 Trade Ministerial, scheduled from September 30 to October 1 in Milwaukee, Wisconsin. During this trip, Goyal is expected to hold a bilateral meeting with US Trade Representative Jamieson Greer to discuss the ongoing progress of the trade agreement.
The framework for the initial phase of the bilateral trade deal was announced in February, but subsequent shifts in the US tariff landscape have necessitated further negotiations to secure favorable terms for India.
Broader Trade Landscape
Beyond the US, Goyal also provided updates on several other significant trade negotiations:
- European Union: India has made negotiating gains under the proposed India-EU trade agreement, despite new European climate regulations like the Carbon Border Adjustment Mechanism. Goyal indicated that earlier negotiations might have yielded more concessions before the introduction of numerous new EU regulations.
- Canada: Talks with Canada are progressing rapidly following a recent meeting between Goyal and Canada’s Minister of International Trade, Maninder Sidhu, in Mumbai.
- Mexico: Terms of reference for a trade pact have been finalized.
- Gulf Cooperation Council (GCC): The first round of negotiations is slated for October.
- Chile: A Comprehensive Economic Partnership Agreement (CEPA) with Chile is anticipated soon.
- Peru: A deal with Peru may not materialize due to competitive interests.
- Israel: A trade agreement with Israel is expected to take more time due to geopolitical considerations.
- China and RCEP: Goyal reiterated India's decision not to join the Regional Comprehensive Economic Partnership (RCEP), citing concerns about effectively entering an FTA with China given existing pacts with ASEAN, Japan, and South Korea.