India’s trade talks are in a “very advanced” stage with the US, Oman and the European Union, commerce and industry minister Piyush Goyal said on Saturday, while underlining that every free trade agreement has its own dynamics. India is also negotiating FTAs with Chile, Peru and New Zealand, he further said.
Addressing reporters on Saturday, the minister said that the FTA with Oman is “almost finalised”, while negotiations with the EU and the US are “making fast progress”.
His comments come in the wake of the signing of the landmark Comprehensive Economic Trade Agreement between India and the UK on July 24. However, there remains uncertainty on whether India will be able to clinch an interim trade deal with the US ahead of the proposed levy of reciprocal tariffs from August 1.
Official sources indicated that there continues to remain uncertainty around the reciprocal tariffs with the US. A team of officials from the US are set to visit India in the middle of August to take forward the negotiations, sources explained.
Meanwhile, elaborating on the India-UK trade deal, Goyal said the government is now focussing on trade deals with developed nations and countries that do not threaten India but rather whose goods and services complement ours.
While the Indian Cabinet has already approved the FTA, its operationalisation could take some time as it also has to be approved by the UK Parliament. Noting that the FTA had bipartisan support in the UK, the minister said that ratification by the British Parliament could take a few months or upto one year.
He also underlined that India will respond if the UK levies Carbon Border Adjustment Tax (CBAM) on Indian exports. The CBAM or carbon tax is not part of the FTA as it is yet to be implemented by the UK. However, the minister underlined that India will take appropriate steps if such a tax is levied on Indian exports.
He further noted that even in the European Union there is a lot of opposition to the CBAM and rethinking taking place as it will increase the cost of living there and eventually also hurt their trade.
“The sufferer will be the EU and not India. We will convert every challenge into an opportunity,” the minister said.
The India-UK FTA also has a clause for review after five years, when provisions that do not suit either of the countries can be taken up for review.
