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 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). When asked whether the US’s chief negotiator for the BTA would be accompanying US Secretary of State Marco Rubio, Goyal said he was not coming with him, but he planned to come next month. Rubio will be on a four-day visit to India from May 23, the aim of which is to advance cooperation in trade, defense and energy sectors. This will be his first visit to India.
What happened in trade talk so far?
India and the US issued a joint statement on February 7 and finalized a framework for an interim trade agreement. However, a decision 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 regarding 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 given its response to both the inquiries and consultations are ongoing between the two sides.
There will be cooperation in these sectors
Goyal said at an event that many big American companies have announced investments in India as the country remains a favorite investment destination for the world. He said that if I look at the various investment commitments received from American industry in the last six months, this figure will probably be more than US $ 60 billion. 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 equipment. He said that we can expand American innovation through the aspirations of 140 crore aspirational Indians, a growing middle class, rising incomes and a growing economy. So it is not surprising that amidst the global crisis with Ukraine war already going on and also the West Asia crisis, the world is going through a period of turmoil.
promotion of msme
The minister said that the current situation is an opportune time for India and the US to work together and build a more reliable and robust supply chain. 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 exchange for early payment which will make the products more competitive.
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