India and US finalise interim trade agreement framework as circumstances change, says Piyush Goyal

Piyush Goyal also said trade pact negotiations are on with number of regions including Israel, Chile, GCC, and Russia-led group Eurasian Economic Union

The US and India announced in February that they had reached a framework for an interim trade agreement, but circumstances have changed, and the pact will be finalised accordingly, Commerce and Industry Minister Piyush Goyal said.

India and the US are finalizing their interim trade agreement framework, as circumstances have changed since February. Commerce Minister Piyush Goyal indicated that negotiations would consider recent shifts in the US tariff landscape. Trade talks are also progressing with other countries, including Canada and Mexico. Goyal emphasized the need for legal expertise in negotiating comparative advantage for Indian goods.

India and the United States have broadly concluded negotiations on their proposed trade agreement, with officials now working on legal provisions to secure the preferential market access agreed upon earlier this year, Commerce and Industry Minister Piyush Goyal said.Speaking at the ET Startup Awards, Goyal clarified Finance Minister Nirmala Sitharaman's recent observation that bilateral trade negotiations had reached a "plateau"."We have concluded the deal. We have nothing more to add, to give or take. The fine print is being worked upon," Goyal said.He explained that the remaining challenge involves translating the understanding reached in February into legally workable provisions.India On Track To Achieve $1 Trillion Exports Target In FY27: Piyush Goyal Goyal clarifies Sitharaman's remarks At the Munich Leaders Meeting on Oct 5, Sitharaman had indicated that both countries were approaching the limits of possible concessions.She described the negotiations as difficult and said further compromises could prove challenging.Her comments prompted speculation about whether discussions had stalled.Responding to those interpretations, Goyal maintained that the broader agreement had already been reached and that attention had shifted to resolving its technical and legal aspects.He emphasised that circumstances had changed substantially since the two countries reached their initial understanding in February.A US Supreme Court ruling limiting presidential tariff powers under the International Emergency Economic Powers Act (IEEPA) had altered the legal framework governing American trade measures.Consequently, Washington has been examining alternative mechanisms for imposing tariffs and extending preferential treatment to trading partners. India seeks export advantage Goyal said the principal objective remains securing the competitive advantage promised to Indian exporters under the February understanding.He explained that a free trade agreement (FTA) does not necessarily require eliminating import duties on every product.Instead, countries can provide preferential market access by applying lower tariffs to goods from selected trading partners.Such arrangements allow exporters to compete more effectively against suppliers from countries facing higher duties.Goyal stressed that the ongoing legal work must preserve the intended commercial benefits despite changes in the US tariff framework.His remarks indicate that the proposed agreement has moved beyond major bargaining issues, although its final legal provisions remain under discussion.