Union Commerce and Industry Minister Piyush Goyal has indicated that an announcement regarding the India-US trade deal is expected "quite soon." Speaking on Friday, Goyal conveyed that negotiations between the two nations are progressing smoothly, with only a few outstanding issues remaining to be resolved.
Goyal highlighted the multifaceted relationship between India and the United States, citing their importance as partners in trade, technology, defense, and critical mineral collaboration. He expressed confidence that India would secure one of the "best" trade deals with the US in every respect, assuring that the negotiations have been friendly and constructive.
India's Red Lines on Agriculture and Dairy
Despite the optimism, Minister Goyal firmly reiterated India's non-negotiable positions on certain sensitive agricultural sectors. He affirmed that India would not compromise on opening its dairy sector or allowing genetically modified (GM) products into the country under any Free Trade Agreement (FTA).
"We are very sensitive to opening up to certain agricultural produce... We are very sensitive to opening our dairy. In fact, till date, we have never opened up dairy for anybody," Goyal stated. He added, "We are very sensitive not to allow any GM products to come to India and we have never allowed it and we'll never allow it in the future."
US Ambassador's Perspective on Deal Progress
Earlier this month, US Ambassador to India Sergio Gor also commented on the trade agreement, noting it has been "at the finish line for a very long time." Gor acknowledged the complexity of such agreements, referencing the India-EU FTA which took nearly two decades to finalize. He expressed optimism that the US-India deal, despite being under negotiation for just over a year, would eventually cross the finish line.
The bilateral relationship, described by Ambassador Gor as "great," spans numerous sectors including pharmaceuticals, IT, and military exercises, indicating a higher level of cooperation than ever before.
Background to the Negotiations
India and the US had finalized a framework for the initial phase of a bilateral trade agreement in February of the current year. However, shifts in global tariff landscapes and evolving geopolitical situations have necessitated further rounds of negotiations to refine the pact.