London [UK], June 26: India cannot finalise a trade deal with the U.S. unless it secures a competitive tariff advantage over its South Asian neighbours and Southeast Asia, said Union Commerce and Industry Minister Piyush Goyal in London.
Speaking at an event organized by India Global Forum, Commerce Minister said, "We had about 50% tariff on India, right? So we have negotiated that deal based on bringing down that 50% to 18%. And the whole deal was centered around that competitive advantage that we got with 18% over our neighbors and other competing countries."
"So even lower then all neighboring countries is lower than all the Asian countries other than Singapore. And that is why the deal was attractive for us," Goyal said.
He further added, "With the Supreme Court striking down the tariffs and now with the 10% which expires on 24th July, we obviously have to have some reason to be able to enter into force that agreement we have already already agreed upon and ensure get a competitive advantage over what is being paid by our countries in the same stage of development or with same cost structure as India has so whether it's Vietnam, Thailand, Philippines, Indonesia, Malaysia, China apart from Bangladesh, Sri lanka and all our neighbours and until the framework of getting that competitive advantage can be finalized we cant enter into force a US deal with the discussions. So that's broadly the discussion. I dont think I can be more transparent that that."
The India US bilateral trade deal is in final stage as per the negotiators of both the countries.
Earlier on June 24, Bethany Morrison, Deputy Assistant Secretary and Bureau of South and Central Asian Affairs indicated that the two countries will announce the finalization of the trade deal as the US trade negotiators were in New Delhi for the final talks over contentious 1% terms mentioned in the deal.
Morrison noted that negotiations have made substantial progress since both nations announced their intention in February 2026 to work toward a comprehensive agreement.
READ: "We are very very close," says US official on ongoing BTA deal
The two countries announced in February this year that they have finalized terms of trade and will discuss the key components of the deal.
Last week, a team of US trade negotiators are in India's capital led by US Trade Representative Jamieson Greer. During his visit, Greer met Commerce Minister and Union Finance Minister Nirmala Sitharaman.
The US Embassy in India has already described US-India trade partnership as a "win-win for both" the sides.
The negotiations for the United States-India Bilateral Trade Agreement (BTA) were formally launched on February 13 last year.
As per the interim agreement between two countries, India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. food and agricultural products, including dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products. The United States will also remove tariffs on certain aircraft and aircraft parts of India.
Despite the major progress, India has registered a resistance on contentious issues such as agriculture and dairy sectors.
As per the officials, US is in discussion with India on non-trade barriers, certain provisions of data localisation for e-commerce firms, and IPR-related issues.
READ: Centre asks industry to deliver 'measurable' export growth
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