Trade Minister Piyush Goyal’s comments emerge as the July 9 deadline, set by the Biden administration, approaches for countries to negotiate trade agreements with the United States.
India is prepared to pursue trade agreements that serve its national interests, but will not rush into decisions solely to meet external deadlines, asserted Piyush Goyal, India’s Minister of Trade and Industry, as he spoke to reporters last Friday.
When inquired about the feasibility of securing a deal before the July 9 cutoff established by President Joe Biden for international negotiations, Goyal emphasized that “the national interest is paramount. If a favorable agreement can be reached, India is always open to engaging with developed nations.”
“India will not enter into trade agreements based merely on deadlines or time constraints… We will proceed only when the agreement is thoroughly finalized and aligns with our national interests,” he added.
Earlier this year, President Biden initially threatened a series of tariffs on imports, targeting India with a proposed rate of 26 percent. Subsequently, these tariffs were suspended for 90 days, establishing a temporary rate of 10 percent as countries worked towards individual agreements with Washington, D.C., set to expire on July 9.
“Successful free trade agreements can only materialize when both parties derive mutual benefit; it should be a win-win scenario,” Goyal explained.
This past week, Indian officials concluded an extensive visit to Washington, aimed at addressing ongoing concerns that have hindered negotiations. Talks between India and the United States have stalled, particularly over issues related to import tariffs on automotive components, steel, and agricultural products.
India is cautious about opening its agriculture and dairy markets and is advocating for competitive tariff rates for its exports to the U.S., particularly in comparison to those granted to nations like Vietnam and China.
In a related matter, India has signaled potential retaliatory measures at the World Trade Organization against the U.S., contending that the 25 percent tariff on automobiles and certain auto parts could negatively impact $2.89 billion in Indian exports, according to an official communication.