Indian goods to get preferential market access in US
What's the story
India and the United States have agreed to grant preferential market access to Indian goods in the American market. Commerce and Industry Minister Piyush Goyal made the announcement today. He said that both countries had endorsed this agreement. The framework for the first phase of the bilateral trade agreement was finalized earlier this year but has since been delayed due to changes in US tariffs policies.
Tariff adjustments
Framework was finalized in February
The initial framework of the bilateral trade agreement was finalized in February.
However, recent changes in the US tariff landscape have necessitated further negotiations on this deal.
Goyal clarified that this was already agreed upon by President Donald Trump and Prime Minister Narendra Modi months ago.
He said it has been acknowledged that India will get preferential trade access with lower duties than competitor countries.
Trade assurance
Tariff advantage for Indian goods
An official recently confirmed that the US has assured India of a comparative tariff advantage over competing countries under the proposed bilateral trade agreement (BTA).
Both sides are working to conclude the first tranche by the end of this fiscal year.
The extent of the advantage for Indian goods will depend on the final agreed-upon tariff framework.
Tariff strategy
Trump's reciprocal tariffs struck down by US Supreme Court
After the US Supreme Court struck down Trump's reciprocal tariffs that were the basis of negotiations, the country is looking at alternate mechanisms to establish a new tariff architecture. This will be done using provisions of the Trade Act.