In a strategic move after a walk-out from RCEP, India announced that its going to sign a new trade deal with the United States.
The Indian Commerce Minister Piyush Goyal said this on November 05, 2019.
“At present, India is exploring trade agreements with the USA and European Union, where Indian industry and services will be competitive and benefit from access to large developed markets,” reads Goyal’s statement.
The Minister, however, added that India is in no hurry and would only sign deals that safeguards its interests.
Attended the meeting on RCEP in Bangkok earlier today. pic.twitter.com/7e0AI3u1pQ
— Narendra Modi (@narendramodi) November 4, 2019
“We should look at an FTA with the US. We have a trade surplus with them,” reads another statement from an official.
According to sources, India is also thinking of restoring the complete benefits of US’ GSP program, while the latter has recently indicated ‘only partial reinstatement’ of the program.
Even the experts from the US-India Strategic Partnership Forum had earlier opined that FTA would resolve many disputes between the nations.
A positive move in this regard will require India to give a preferential treatment to US companies as demanded by the US Government in the past.
On the other hand, India had also sought US of cut-down of import duties and other concessions, besides access to its software professionals. However, this seems to be a challenge considering the tightened H-1B and other rules.
“Every country has its sensitivities, which should be factored in,” say the Indian officials.
It’s worth waiting to watch where the India’s trade strategy is headed towards!