India-us nearing trade deal: Goyal
WASHINGTON: Commerce minister Piyush Goyal on Tuesday proposed a “preferential trade agreement” with the US covering a limited number of goods and services as the next step after the signing of a “quick” trade deal that was just a few phone “calls” away and before the conclusion of a more ambitious Free Trade Agreement (FTA) that could take years.
India and the US have been working on a limited trade deal to expressly address the more urgent issues of concern to both sides and have said they planned to start negotiations on a broader FTA later in the year, either before or after US elections in November.
“Another couple of calls and we should be able to sort that out,” the minister said of the deal currently under negotiations. He was participating virtually an annual summit of the Us-india Business Council (USIBC, a trade body), which was to take place in New Delhi but was being held virtually in view of the Covid-19 epidemic. However, as the two countries worked towards a “much more sustainable, much more robust and much more enduring” partnership in the form of an FTA, which may take years to conclude, the two sides “should also look at early harvest in the form of a preferential trade agreement”, Goyal said.
The US has pushed for greater market access in agriculture, dairy and medical devices sectors in the limited trade agreement being finalised, said people familiar with the discussions. India has sought restoration of trade benefits under the US GSP, which were terminated by the Trump administration in the summer of 2019 to force India’s hand.