India-US Trade Pact Delayed by Tariffs; Goyal Optimistic for Phase 1 Deal by July 24
On Sunday, Goyal had announced that his US counterpart would be arriving in New Delhi for negotiations on the trade agreement
New Delhi: Commerce minister Piyush Goyal on Monday said that negotiations with the United States are taking longer than expected because of tariff-related issues, but both sides remain engaged in discussions. “India is pushing for lower tariffs and better market access as part of its proposed trade agreement with the United States,” Goyal said at an event here, while expressing hope that the first phase of the pact could be signed before July 24 this year.
On Sunday, Goyal had announced that US Trade Representative Jamieson Greer, his US counterpart, would be arriving in New Delhi for negotiations on the trade agreement. “My counterpart is coming to Delhi tomorrow (Monday) for the US trade deal talks,” he had said in an event in Mumbai. On Monday, a top government source, however, said that the US’ top trade negotiator is scheduled to arrive in India on Tuesday for two days of discussions. “India is seeking a good trade deal that provides it a tariff advantage over competing Asian economies,” the source said.
Greer’s trip follows the first meeting in over a year between Prime Minister Narendra Modi and the US President Trump on June 17 on the sidelines of the G7 summit in France. New Delhi is seeking a competitive tariff edge over regional peers, including Asian peers like Vietnam. “We are trying to work out with the US how they will ensure that we will get a comparative advantage, so that our exporters can benefit,” Goyal said.
As the trade deal is getting delayed due to some reason or the other, the source, however, said that India is still expressing concern over the delay in the first phase of the trade deal between Washington and New Delhi. “India is also wary of further tariff threats if talks stall. In the scheduled meeting between Goyal and his counterpart Greer, India will also seek assurances to ensure Washington doesn’t levy new tariffs after the deal,” the source said.
Ahead of a meeting with Greer, Goyal also said that the 50 per cent duty on the country's imports was one of the reasons why the trade agreement with the US was taking longer to finalise. “I would be ‘happy’ if a deal is finalised before July 24, when Washington's temporary 10 per cent tariff on trading partners expires. The faster, the better,” the minister said.
Greer’s office on Monday also said that the talks are aimed at ‘achieving fair, balanced, and reciprocal trade’. Earlier in the day, US Ambassador to India Sergio Gor said that Greer would hold multiple meetings with Goyal this week to move the proposed first phase bilateral trade agreement (BTA) closer to conclusion ahead of a crucial tariff deadline next month. “Looking forward to welcoming Ambassador Greer @USTradeRep to New Delhi! Multiple sessions scheduled with Minister @PiyushGoyal to advance the U.S.-India trade deal!” Gor wrote in a post on X.
In February, the two sides agreed to 18 per cent tariffs on Indian goods in exchange for New Delhi lowering trade barriers and buying more American goods. At the time, the tariff was lower than those for competing economies such as Bangladesh and Vietnam. But a final deal was waylaid when the US Supreme Court invalidated Trump’s sweeping global tariffs.
Negotiations have been further complicated by the USTR's Section 301 investigations on India and other countries, which analysts say Washington is using to press India to open its markets for agricultural and other products, and to buy more US energy and defence products.