US calls Piyush Goyal's visit for trade talks an important step forward

The United States (US) calls Commerce and Industry Minister Piyush Goyal’s visit to America for trade talks an "important step," amid the growing pressure on India to conclude a trade deal.

 

“As President Donald Trump has said, the United States and India are continuing negotiations to address trade barriers between our two nations. This visit is an important step in the process. President Trump is certain our two countries can come to a successful conclusion,” a US Embassy spokesperson said in response to a query sent by Business Standard.

 

According to people aware of the matter, Goyal will meet United States Trade Representative (USTR) Jamieson Greer this week on the sidelines of the United Nations General Assembly (UNGA) in New York. They would discuss key trade-related matters as well as the trade agreement since an early conclusion is being eyed.

 

The commerce and industry ministry did not respond to Business Standard’s query. However, an official statement from the ministry on Saturday evening said that Goyal is set to visit the US and hold talks with US officials on September 22. He would advance discussion towards achieving ‘early conclusion of a mutually-beneficial trade agreement’. The statement did not specify details of the travel plans and the US administration officials Goyal is meeting.

 

Goyal’s visit follows the meeting of chief negotiators from both the countries in New Delhi on September 16.

 

A team of officials headed by Assistant USTR for South and Central Asia Brendan Lynch and Indian team headed by special secretary in the commerce department Rajesh Agrawal met earlier this week. They decided to intensify efforts to achieve early conclusion of a ‘mutually-beneficial’ trade deal, setting aside recent strains in bilateral relationship. Both sides had also called the meeting ‘positive’.

 

Earlier this month, US ambassador designate to India Sergio Gor had said that the US administration had invited Goyal to Washington to resolve trade tensions between the two countries. Gor had also said the issues will get resolved in a few weeks.

 

This will be the second meeting between the trade negotiating teams since the US administration last month imposed a punitive 50 per cent tariff on a majority of Indian goods.

 

This includes the 25 per cent tariff for purchasing Russian oil.

 

During the talks, one of India’s top priorities will be to sort out the imposition of an additional 25 per cent tariff.

 

Last month, a commerce department official had said that addressing the issue of the high 50 per cent tariff imposed by Washington on Indian exports will be necessary to strike the deal.

 

“...whenever we strike a deal, both the tariffs (additional 25 per cent and 25 per cent on purchase of Russian oil) need to be addressed…It doesn't need to be addressed at the same exact time, it can be addressed in multiple other ways. But addressing both is necessary to have an effective trade deal on the day,” the official had said.