India’s first-phase trade deal with the US is in the final stages of legal drafting, Trade Minister Piyush Goyal said, reported Reuters. India will implement it only when it secures a “comparable advantage or competitive advantage over our peer countries,” he said.
India wants its exporters to face US tariffs no higher than those on competing suppliers such as Vietnam, Bangladesh and Indonesia, according to Reuters. The US imported $247 billion of goods from Vietnam over the 12 months through August, against $98 billion from India, according to Census data.
Trade Secretary Rajesh Agrawal said India expects to conclude and sign the deal at the earliest possible time. India is seeking preferential market access and greater tariff stability.
A framework agreed in February cut the punitive US tariff on most Indian goods to 18% from 50%, but talks have since slowed. Finance Minister Nirmala Sitharaman said earlier this month that negotiations had reached a plateau.
Meanwhile, a US law signed in September could authorize tariffs of up to 100% on goods from countries buying Russian oil. US Ambassador Sergio Gor said President Trump could decide on sanctions provisions affecting India within about 10 days, per Business Today.
