A free-trade agreement is only possible when there is mutual benefit. India never enters into trade deals based on deadlines or time pressure. A deal is accepted only when it is fully matured, well-negotiated, and in the national interest, the commerce minister said.
Union Commerce Minister Piyush Goyal said on Friday that India is in no hurry to finalise any major trade deal on the basis of any deadline but will agree on a decision if it is a win-win for both parties. Goyal’s comments hold significance as India and the US are reportedly in the final stages of striking an interim trade deal. The talks are important, as the suspension of US reciprocal tariffs is ending on July 9, and hence both sides are looking at finalising the deal before that.
Goyal stressed that India’s approach to international trade negotiations remains firm and ‘principled’.
India seeks greater market access for its labour-intensive goods, while the US wants duty concessions for its agricultural products.
“It should be a win-win agreement, and only when India’s interests are safeguarded—national interest will always be supreme—and keeping that in mind, if a good deal is formed, India is always ready to engage with developed countries,” Goyal said on the sidelines of the 16th Toy Biz B2B expo in Delhi.
“Discussions are ongoing with various countries, be it the European Union, New Zealand, Oman, the US, Chile, or Peru. Talks about agreements are underway with many nations,” he said.
“A free-trade agreement is only possible when there is mutual benefit. India never enters into trade deals based on deadlines or time pressure. A deal is accepted only when it is fully matured, well-negotiated, and in the national interest,” the commerce minister added.
India on Friday proposed imposing retaliatory duties under the World Trade Organisation (WTO) norms against the US over American tariffs on imports of auto parts from the country in the name of safeguard measures.
“The proposed suspension of concessions or other obligations would take the form of an increase in tariffs on selected products originating in the United States,” according to a notification of the WTO being circulated at India’s request.
India has notified the WTO’s Council for Trade in Goods of its proposed suspension of concessions and other obligations under certain WTO provisions.
“This notification is made in connection with safeguard measures extended by the United States of America on imports of automobile parts from India,” it said.
On March 26, the US adopted a safeguard measure in the form of a tariff increase of 25 per cent ad valorem on imports of passenger vehicles and light trucks, and on certain automobile parts from India.
India has maintained that the measures taken by the United States are not consistent with the GATT (General Agreement on Trade and Tariff) 1994 and the agreement on Safeguards.
As consultations sought by India on these tariffs have not taken place, "India reserves the right to suspend concessions or other obligations", the WTO notification added.
The development is important, as India and the US are actively negotiating an interim trade agreement to boost trade ties.