The Union Commerce Minister announced that India is likely to receive tariff benefits on textile exports, similar to those Bangladesh receives, under the United States’ trade agreement. Indian garment traders will be able to use American cotton once the deal is signed and will also enjoy zero tariffs from the US.
Additionally, Piyush Goyal said the trade deal between New Delhi and Washington will include a clause on duty benefits for imports of US cotton. However, neither the joint agreement nor the White House fact sheet on the India-US deal mentioned the clause. He also rejected speculation that Bangladesh has secured a better deal than India, saying Washington will provide similar benefits to New Delhi. “He (Rahul Gandhi) spread another lie in the Parliament that Bangladesh has got more benefits from the trade than India”, the Commerce Minister said, referring to the Leader of the Opposition.
“Just as Bangladesh has a facility that if raw material is purchased from America, then if you process it and make cloth and export it, then it will be available at zero reciprocal tariff. India also has the same facility, and India will also get it. Right now, our framework agreement is being made”, the minister further added.
The minister’s statement provides more information on the India-US interim deal, whose key details have been kept confidential so far. President Trump announced the trade deal last week, agreeing to lower the reciprocal tariffs on Indian goods to 18% from 25%, reducing overall tariffs from 50% to 18%.
Meanwhile, Indian farmers are concerned that the government has made numerous concessions in the agricultural sector in order to secure a deal with the US to cut tariffs.
However, the commerce minister stated that Indian farmers will benefit, as many of these products will be exported in large quantities to various nations.
