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Indian Commerce Minister Says Trade Deal Close

Market access negotiations needed to return India to the Generalized System of Preferences benefits program may be mostly “sorted out,” India's Economy Minister Piyush Goyal said in a speech to the U.S.-India Strategic Partnership Forum Sept. 1. His office summarized some points about the deal, which was described as foundational, in a series of tweets. U.S. Trade Representative Robert Lighthizer “and I agreed that we can look finalising before the election, but otherwise soon after the election,” he said. “The entire package is nearly ready and can be finalised at any time. India is open to signing tomorrow on what we have agreed on.”

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The deal has been reportedly close for a year (see 1909240036 and 1909060029). Lighthizer testified in June that the two countries were in constant negotiations toward a trade deal, but that India is stubborn about keeping its tariffs high (see 2006180029). Senators were concerned about retaliatory tariffs on American apples and lentils, which were put in place because of Section 232 tariffs on Indian steel. “It is in the interest of both countries to deepen our strategic partnership with this immediate trade deal also because it will open the doors to starting a dialogue on a large bilateral engagement where we will have much more elbow room,” Goyal said.

He also talked about progress on trade facilitation in India, and said they are working on a common database that will go to different ministries and regulators so that the country can have “a genuine single window system.”

Deputy Secretary of State Stephen Biegun said at the same forum said that here is a chance of a mini trade deal before Nov. 3. “The time is short before the U.S. elections and a lot of governments around the world are hedging a little bit; I wouldn’t be surprised if the Indian Government [is] as well. But Prime Minister [Narendra] Modi and President Trump are actually -- have a strong personal bond and a strong commitment to do this, so there’s a chance. I know USTR is continuing to work at it.”