Piyush Goyal Meets U.S. Commerce Secretary in Washington for Second Time in a Week
Goyal discussed the proposed bilateral trade agreement currently under negotiation between the two countries
New Delhi: Commerce and industry minister Piyush Goyal on Friday met US Commerce Secretary Howard Lutnick in Washington for the second time within a week, to discuss the proposed bilateral trade agreement currently under negotiation between the two countries. On May 20, Goyal held a meeting with Lutnick to expedite the talks on the first phase of the trade pact.
The meeting assumes significance as both countries are looking at finalising an interim trade pact by July 9, the day America’s 90-day suspension of reciprocal tariffs on Indian goods comes to an end. “Held a constructive meeting with Secretary @HowardLutnick for a mutually beneficial trade agreement. Committed to enhancing opportunities for our businesses and people,” Goyal said in a post on X.
The US, on April 2, imposed an additional 26 per cent reciprocal tariff on Indian goods but suspended it for 90 days. However, the 10 per cent baseline tariff imposed by America remains in place. The four-day discussions between the chief negotiators of both countries have also concluded in Washington on May 22.
In the interim trade deal, New Delhi is pushing for full exemption from the 26 per cent reciprocal tariff on Indian goods. Due to the 90-day suspension of the 26 per cent additional import duty, Indian exporters are at present paying just 10 per cent baseline tariffs, instead of 26 per cent earlier proposed.
At present, the Trump administration requires approval from the US Congress to bring tariffs below the MFN (most favoured nation) rates. But the administration has the authority to remove the reciprocal tariffs imposed on a number of countries, including India. India may look at certain commitments from the US on the duty concessions for its labour-intensive sector in the first tranche of the proposed bilateral trade agreement (BTA).
Both countries have fixed a deadline to conclude the first phase of the pact by fall (September-October) of this year to more than double bilateral trade to $500 billion by 2030 from the current $191 billion. To boost bilateral trade, India is seeking duty concessions for labour-intensive sectors like textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, chemicals, grapes, and bananas in the proposed pact with the US.
