India and the United States have finalised the framework of their proposed trade agreement, but the deal cannot be implemented until New Delhi secures a competitive tariff advantage over rival countries, Union commerce and industry minister Piyush Goyal said on Saturday.Responding to an query on recent remarks by US Ambassador to India Sergio Gor about the progress of the bilateral trade pact, Goyal indicated that the key hurdle is ensuring that Indian exports face lower duties than those from competing nations.“We have finalised the framework agreement and announced it as well. The Supreme Court’s order regarding tariffs came after that,” Goyal said.“We cannot implement the FTA until we secure a competitive advantage. The issue currently pending is that our duties need to be lower compared to those of competing nations; once this is settled, the trade agreement will be implemented,” he added.
Tariff competitiveness emerges as key sticking point
Goyal’s remarks offer the clearest indication yet of what is delaying the implementation of the proposed trade arrangement between the two countries.The minister suggested that India is seeking preferential tariff treatment relative to other countries that export similar products to the US market. Without such an advantage, New Delhi appears reluctant to move ahead with the agreement.His comments also come against the backdrop of legal developments in the US relating to tariffs. Goyal noted that a Supreme Court order concerning tariffs was issued after the framework agreement had already been finalised.
Negotiations close to conclusion
The latest statement comes weeks after US Ambassador Sergio Gor expressed confidence that the deal was nearing completion.Earlier this month, speaking at Citi’s India Conference, Gor had said that only a small portion of the negotiations remained unresolved and that both sides were working to get the agreement “across the finish line”.“Once that trade deal is finalised… the interim trade deal was there in place. It is that one per cent that we are trying to get across the finish line,” Gor had said.He had added that the agreement was expected to be completed within “weeks” rather than years.Previously, Gor also said Washington expected the interim trade agreement to be signed in the coming weeks or months and described the India-US partnership as having “limitless potential”.India and the US have been negotiating an interim trade arrangement as a stepping stone towards a broader bilateral trade pact.The framework for the agreement was finalised in February, while negotiators from both countries have held multiple rounds of discussions to resolve outstanding issues.The proposed deal is expected to deepen economic ties between the two countries and expand cooperation across trade, investment and technology sectors.However, Goyal’s latest remarks suggest that tariff-related concerns and the need for favourable market access conditions remain the final obstacles before the agreement can be formally implemented.
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