2 hrs ago
India-US Trade Pact Awaits Preferential Tariff Terms From Washington
India and the United States are working on a trade agreement.
India wants the United States to give its exporters better tariff terms than competing countries receive.
Tariffs are extra charges placed on goods brought into a country.
Indian officials say the agreement will be finalized after Washington provides this advantage.
Exporters say uncertainty is making American buyers order fewer goods and avoid long commitments.
The two countries are discussing issues such as digital trade, market access and supply chains.
India and the US have made progress, but further talks are needed after changes to US tariffs.
The agreement is meant to create useful opportunities for businesses, farmers, workers and consumers in both countries.
Piyush Goyal said India will finalize and announce the Bilateral Trade Agreement after the United States offers preferential tariff terms over competing countries.
India faces US-market competition from Sri Lanka, Bangladesh, Thailand, Cambodia, Vietnam, Indonesia and Malaysia.
Exporters said tariff uncertainty has reduced order volumes, discouraged large or long-term commitments and encouraged US buyers to diversify suppliers.
Negotiators are also discussing market access, digital trade, supply-chain resilience, non-tariff barriers and strategic-sector cooperation.
India’s fiscal 2025-26 bilateral trade with the US reached $140.76 billion, while a separate calendar-year 2025 figure cited in one report was $149.42 billion.
- Who
- India, represented by Commerce and Industry Minister Piyush Goyal, and the United States, represented in negotiations by US Trade Representative Jamieson Greer.
- What
- The countries are negotiating a Bilateral Trade Agreement, with India seeking preferential US tariff terms before finalizing it.
- Where
- The negotiations concern trade access to the US market; Goyal is expected to attend meetings in Milwaukee and Chicago.
- When
- Goyal made the comments on Thursday; he is expected to visit the United States in late September, including a ministerial beginning September 30.
- Why
- India wants its exporters to have a tariff advantage over competitors, while exporters want uncertainty over US market access reduced.
Government and Negotiators
Exporters and Industry
Timing of the agreement
Government and Negotiators
Piyush Goyal said India will finalize the agreement once the United States provides preferential terms over competing countries.
Exporters and Industry
Exporters urged the commerce ministry to conclude the pact quickly to reduce tariff uncertainty.
Effect of tariff uncertainty
Government and Negotiators
The commerce ministry is reviewing trade patterns, sector performance and industry concerns for discussions with US authorities.
Exporters and Industry
An exporter said US order books appeared stable but volumes had declined, with buyers avoiding large or long-term orders and diversifying suppliers.
Market-access concerns
Government and Negotiators
India is seeking improved tariff competitiveness against countries including Bangladesh, Vietnam, Thailand and other Asian exporters.
Exporters and Industry
Industry representatives also asked the ministry to address US safeguard measures affecting quartz surface products.
Key facts
- Condition for finalization
- India says it will finalize and announce the BTA after the US offers preferential tariff terms compared with competing countries.
- Additional US tariff
- The United States imposed an additional 10% tariff on several countries, including India, starting July 24.
- Fiscal 2025-26 bilateral trade
- India-US trade totaled $140.76 billion, up 6.53% from $132.2 billion in 2024-25.
- Fiscal 2025-26 trade balance
- India exported $87.31 billion to the US, imported $53.45 billion and recorded a $33.9 billion surplus.
- Recent trade figures
- From April to July of fiscal 2026-27, Indian exports to the US rose 3% to $34.5 billion, while imports increased 22.42% to $22.12 billion.
- Calendar-year 2025 figure
- One report cited total bilateral goods trade of $149.42 billion in 2025, comprising $103.82 billion in Indian exports and approximately $45.6 billion in US exports; this differs from the fiscal-year figures because it covers a different period.
- Other prospective agreements
- Goyal identified Canada, Mexico, Chile, Mercosur, SACU, the GCC and Israel as prospective trade-agreement partners.
Quotes
Piyush Goyal
India’s Commerce and Industry Minister
“As soon as the US is able to give us the preferential rate in comparison to our competition, we will finalise the BTA and announce the final details.”
republicworld.com
livemint.com
Sources
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