India US Trade: Big statement by Union Minister Piyush Goyal, American team may come to India for trade talks next month
Delhi. Commerce and Industry Minister Piyush Goyal said on Thursday that the US team may come to India next month for trade talks. The Indian side had held a one-to-one meeting with their US counterparts in Washington DC in April to finalize the details of the interim agreement and take forward negotiations under a comprehensive bilateral trade agreement (BTA). Asked whether the US chief negotiator for the BTA would be accompanying US Secretary of State Marco Rubio, Goyal said, “He is not coming with him, but there are plans for him to come next month.”
Rubio will be on a four-day visit to India from May 23 with the aim of furthering cooperation in trade, defense and energy sectors. This will be his first visit to India. India and the US issued a joint statement on February 7 finalizing a framework for an interim trade agreement.
However, a ruling by the US Supreme Court struck down all retaliatory tariffs which the US administration was using as a tool to strike trade deals with partner countries. After this, America imposed 10 percent additional duty on all imports under Section 122 of the Trade Act for 150 days from February 24 this year.
Additionally, it also initiated two investigations under Section 301 against major exporters over their excess production capacity and labor standards. Under Section 122, a fee of up to 15 percent can be imposed for a maximum of 150 days. Whereas under Section 301, if it is found in the investigation that the actions of the trading partners are harming American interests, then there is no limit on the duty. India has responded to both inquiries and consultations between the two sides are ongoing.
Goyal said at an event that many big American companies have announced investments in India as the country remains a preferred investment destination for the world. “If I look at the various investment commitments we have received from US industry in the last six months, the figure would probably be more than US$60 billion,” he said. Look at Amazon’s data center investments and Google’s data center investments. My understanding is that America and India are working as natural partners. We complement each other.”
He said India should work closely with the US in areas such as technology, innovation, high-precision defence, digital data centres, quantum computing equipment and medical devices. “We can amplify American innovation through the aspirations of 1.4 billion aspirational Indians, a growing middle class, rising incomes and a growing economy,” he said. So it is not surprising that in the midst of a global crisis, with the Ukraine war already going on and the West Asia crisis, the world is going through a period of turmoil.
The Minister said that the current situation is an opportune moment for India and the US to work together and build more reliable and robust supply chains. On testing facilities, he said that Bureau of Indian Standards, Export Inspection Agency and National Testing Agency are ready to assist the industry in setting up facilities equipped with modern and best equipment.
On ways to promote Micro, Small and Medium Enterprises (MSMEs), he suggested that American companies operating in India consider making payments to these units within seven days of acceptance of goods, which will speed up cash flow. He said that this will enable MSMEs to focus on their business and can also give discounts in lieu of early payment which will make the products more competitive.
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