‘No trade deal with US without preferential tariffs’:Goyal says tariff advantage will give Indian goods better price in US market

India will announce the final details of its Bilateral Trade Agreement (BTA) with the United States only after Washington agrees to offer preferential tariff terms over India’s competitors, Commerce and Industry Minister Piyush Goyal said today “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,” Minister Piyush Goyal said, addressing a national workshop on Leveraging FTAs Outreach program. Which countries are India’s competitors? Countries including Sri Lanka, Bangladesh, Thailand, Cambodia, Vietnam, Indonesia and Malaysia are major competitors of India in the US market. Tariff advantage vis-a-vis these nations will give price competitiveness to Indian goods in the American market.
India exported goods worth about $87 billion or ₹8.26 lakh crore to the US in 2025-26. India already signed FTAs with 9 other countries Goyal also said that India’s nine free trade agreements (FTAs), spanning economies representing about $60 trillion of GDP, would provide preferential access to nearly two-thirds of global trade. He said the other FTAs that India would conclude over the next few months and couple of years, including those with Canada, Mexico, Chile, Mercosur, SACU (South Africa Customs Union), GCC (Gulf Cooperation Council) and Israel, together with efforts to review ASEAN, Korea and Japan trade deals would give India access to 75% of global trade at a rate lower than its competitors. India has implemented trade pacts with the UK, Mauritius, Oman, UAE, and Australia. Trade pact with New Zealand will get live soon and thereafter (FTA with) EU, the 27-nation bloc, will get live. And 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. -Commerce Minister Piyush Goyal In February, India and the US announced finalisation of the framework for the first phase of the pact, but changes in the tariff landscape in the US have led to further negotiations between the two countries on the pact. Currently, US levies 10% additional tariffs The US has imposed an additional 10% tariff on a number of countries, including India, from July 24. Goyal will visit the US in late September to attend the G-20 Trade Ministerial in Milwaukee and hold bilateral talks with USTR Jamieson Greer, with trade pact issues to figure in the discussions.