US trade deal: India won't compromise on national interest to meet deadline, says Goyal

NEW DELHI: India will enter into a trade agreement with the US only if its interests are protected and it is able to sustain a tariff advantage over its competitors, while prioritising the interests of farmers, commerce and industry minister Piyush Goyal said Friday.

“India has never discussed any trade agreement or even a tranche of a trade agreement under any time pressure or under any duress. We have to take care of our national interests, we have to ensure that it’s a fair deal which gives us a sustained preferential advantage over our competitors and if we get a good deal and we are able to strike the right balance, everything is possible. But we are not working towards any specific deadlines, we are working towards national interest,” he told TOI in an interview, in a reference to the July 9 deadline set by the US President Donald Trump for wrapping up trade agreements.

Trump had imposed reciprocal tariffs on nearly 100 countries but agreed to a 90-day pause that is to end Tuesday. India was slapped with 26% reciprocal tariffs.

There is uncertainty over whether India and the US can agree to an early tranche or a mini deal before that even as a comprehensive bilateral trade agreement is negotiated by Fall (Sept-Oct) after a meeting between Trump and PM Narendra Modi.

For India, lowering tariffs on farm products, such as maize and soybean, as well as dairy products is a concern. While Goyal did not get into specifics, he said that India would not compromise the interests of the farm and dairy sectors. “We take every concern into account. Farmers' interest is always paramount for the Modi govt. In any negotiation we have done, you have seen the UK, Australia, Mauritius, EFTA and the UAE agreements, India’s farmers have been protected.”

Govt has so far refrained from offering concessions in major agricultural products, but for the US, it is the main focus.

While some govt officials said that the US demands are not very clear, for India, Goyal said Indian expectations for duty concessions in labour intensive sectors were the focus of the trade deal. India was hoping for duty concessions in leather, footwear, textiles and some auto parts in return for reducing levies on automobiles and American whiskey.

Besides, India wants to be insulated from future tariff adjustments, including sectoral actions, while getting the benefit of lower duties compared with countries such as China and Vietnam.

There are only a handful of countries including the UK, China and Vietnam that have so far agreed to trade deals with the US.