India To Continue Talks With US To Retain Competitive Tariff Advantage: Goyal

(MENAFN- KNN India) New Delhi, Feb 28 (KNN) India will continue discussions with the United States to secure a trade arrangement that preserves its comparative advantage, Commerce and Industry Minister Piyush Goyal said on Friday.

India and the US earlier this month announced a framework for signing an interim trade deal. The framework provided for India eliminating or reducing tariffs on US goods while the US committed to lowering 'reciprocal tariff ' to 18% on Indian goods.

The US Supreme Court however recently struck down the country-specific tariffs imposed by the Trump administration. The US has since imposed a 10 per cent additional tariff on all imports, which it has indicated could rise to 15 per cent, removing India's earlier tariff edge.

Talks Ongoing Amid Evolving Situation

Speaking at the News18 Rising Bharat Summit, Goyal said India remains committed to securing the best possible deal negotiated with the US to ensure a competitive advantage over other emerging and developing economies.

He added that trade agreements are about comparative advantage-if all countries face the same tariff rates, none gains an edge, but being at a lower rate than competitors provides a clear advantage.

The minister noted that the situation remains fluid and that India is in dialogue with the US administration to protect its interests as the US considers further steps to retain tariffs and existing trade arrangements.

Goyal met US Commerce Secretary Howard Lutnick in New Delhi on Thursday to discuss trade and economic issues. He also pointed to a provision in the joint statement allowing either side to rebalance commitments if tariff terms change.

Beyond tariffs, the minister said the agreement contains other beneficial elements for India.

(KNN Bureau)

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