India-US trade deal negotiations are making ‘fantastic’ progress according to Commerce Minister Piyush Goyal. His statement comes days ahead of US President Donald Trump’s reciprocal tariff deadline of August 1. Both India and the US are looking to seal a mini or interim trade deal ahead of that.Goyal has also expressed optimism about getting preferential treatment for India from the Trump administration, according to a Reuters report.In the last few days Trump has announced several trade deals with countries like Japan, Vietnam, Indonesia and Philippines. Earlier this month the US President sent out tariff letters to over 20 countries informing them of tariff rates effective August 1. Since then some of these countries have struck a trade deal with America. Notably, India has not received any letter so far.
India Eyes ‘Special Treatment’ From US
During his United Kingdom visit for the signing of the India-UK trade deal, Goyal downplayed the significance of deadlines in trade negotiations whilst expressing optimism about the discussions with the United States.“We’re making fantastic progress with the United States, and I do hope we’ll be able to conclude a very consequential partnership,” Goyal said when asked about the trade deal.Also Read | India-US trade deal: India wants Donald Trump administration to offer tariff rate lower than Indonesia; eyes competitive advantageIndia has hardened its stance on opening its agriculture and dairy sector – a consistent stand in all its trade deals so far. The US is pushing for access into these two sectors.When questioned about potential disagreements with Washington regarding agriculture, Goyal responded that “negotiations happen in the negotiation room”, whilst indicating that India would consider accepting smaller sectoral achievements rather than insisting on a comprehensive agreement.Importantly, Goyal said that India is looking for preferential market access into the US compared to its competitors. “All options are on the table, and we will see how it plays out, but what is important is to get preferential market access over our competitors, our peers,” he was quoted as saying by Reuters.Also Read | ‘10% is the new zero tariff’: Trump seals trade deals with many countries – what do they mean for India?“And I’m very confident that India, having been the first country to start negotiating, will be given a special and preferred treatment,” he added.Earlier this week Reuters reported government sources as saying that an interim trade deal with the US ahead of the August 1 deadline for 26% reciprocal tariffs looks unlikely.Goyal expressed his view that negotiations have never been successful when constrained by timelines or predetermined restrictions. He emphasised his desire for an agreement that benefits all parties involved.“One has to have a broad mind and a package which is balanced and can give equity to both sides.”
What Trump Has Said
In the last few weeks, the US President has repeatedly indicated that a trade deal with India is ‘near’. Indian officials were in the US last week for the fifth round of talks for the bilateral trade agreement. According to a PTI report, US officials are likely to visit India in the second half of August for another round of trade talks.While both countries are targeting the first phase of the trade deal by fall, expectations have been there for an interim agreement being announced.While announcing a trade deal with Indonesia, Trump had indicated that the trade deal with India is being worked on similar lines in terms of market access. He has time and again asked major world economies to open their markets for US products, indicating flexibility in bringing down tariff rates.Also Read | Donald Trump’s aggressive trade moves: US President indicates he won’t go below 15% tariff rate; ‘we’ll have a straight…’Meanwhile, Trump has also suggested that a 15% reciprocal tariff would serve as the standard baseline for the majority of nations. His comments came after sealing a trade deal with Japan with 15% reciprocal tariffs on the latter.Prior to the August 1 deadline, the US President has specified a minimum tariff rate of 15%, indicating an upward shift in the baseline from 10%.“We’ll have a straight, simple tariff of anywhere between 15% and 50%,” Trump said Wednesday at an AI summit in Washington according to a Bloomberg report. “A couple of — we have 50 because we haven’t been getting along with those countries too well.”
