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India Says US Must Offer Preferential Tariffs Before Finalising Trade Pact

The demand ties completion of the interim Bilateral Trade Agreement to a tariff edge for Indian exporters and could shape talks at the late‑September G20 Trade Ministerial in Milwaukee.

Overview

  • Commerce minister Piyush Goyal told a national workshop on Thursday that India will only finalise the Bilateral Trade Agreement after the United States offers tariff rates that give Indian exporters a comparative advantage over rival suppliers.
  • Negotiators report substantial progress since a February framework, but recent U.S. tariff moves, including an additional 10% duty imposed from July 24, and ongoing U.S. procedural trade reviews remain the main unresolved obstacles to signing.
  • Goyal is scheduled to travel to the United States in late September to attend the G20 Trade Ministerial in Milwaukee and is expected to hold bilateral talks with U.S. Trade Representative Jamieson Greer to press for the tariff terms.
  • New Delhi is simultaneously operationalising and negotiating multiple free trade agreements and says nine FTAs already give preferential access to roughly two‑thirds of global trade while India shipped about $87 billion in goods to the U.S. in 2025–26.
  • If Washington offers a tariff advantage, Indian exporters — especially labour‑intensive sectors such as textiles and small and medium firms — could gain price competitiveness in the U.S. market and broader supply‑chain cooperation efforts like Pax Silica may advance.