Amid the delay in the India-US Free Trade Agreement, Union Commerce Minister Piyush Goyal on Saturday said that New Delhi will not implement the trade pact until a competitive advantage is secured.
Explaining the pending issues, Goyal said that the agreement was finalised and announced before the US Supreme Court’s order striking down President Donald Trump’s reciprocal tariffs.
“We have finalised the framework agreement and announced it as well. The Supreme Court’s order regarding tariffs came after that,” Goyal said at a press conference at the BJP headquarters.
The minister further stated that the deal cannot be implemented in its present form as India wants lower duties compared to competing nations.
“We cannot implement the FTA until we secure a competitive advantage. The issue currently pending is that our duties need to be lower compared to those of competing nations; once this is settled, the trade agreement will be implemented,” he said.
Earlier this month, Goyal said that the first tranche of the India-US bilateral trade agreement could be signed as early as July this year.
He informed mediapersons that the negotiations are nearing a crucial stage despite recent tariff-related concerns.
The minister’s remarks had raised expectations of a breakthrough in trade talks that have been going on for months now.
The proposed agreement is expected to provide a significant boost to bilateral trade and enhance opportunities for Indian exporters in key sectors.
The proposed trade agreement is seen as a key step in expanding India-US economic relations at a time when both nations are looking to diversify supply chains, increase investment flows and strengthen strategic partnerships across sectors.
If concluded, the initial tranche could pave the way for a broader and more comprehensive trade framework in the future.