India, US 'thinking big', says Piyush Goyal, rules out mini trade deal or FTA

Washington, January 12

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The Modi government and the Biden administration are “thinking big” in terms of their trade and commerce relationship, a top Indian official said on Wednesday as he ruled out the previously talked about mini trade deal or a free trade agreement and noted that restoration of GSP is not a priority for New Delhi.

The previous Trump administration revoked the Generalised System of Preferences (GSP) from India. The GSP allows eligible developing countries to export duty-free goods to the US.

It is during the previous administration as well that the two countries were on the verge of a mini trade deal, which has now been kicked out of the table. The Biden administration is also not in favour of a free trade agreement which businesses from either side are now talking about.

“I think in terms of GSP, I have not heard any significant clamour from the Indian industry. To focus our energies on the GSP issue, I have raised it today with my counterparts,” Union Commerce and Industry Minister Piyush Goyal told reporters at a news conference at the conclusion of the India-US Trade Policy Forum meeting which he co-chaired with US Trade Representative Katherine Tai.

“It’s an issue, which is probably something that the Congress will have to take a call on. But it’s not something which has been high on our priority lists or something on which we spend a lot of time to discuss, it was discussed, but more in passing,” he said.

“I have placed on record our requests that GSP should be restored. But I can assure you the trade between the two countries continues to expand very rapidly. I do not think that GSP withdrawal has been to the detriment of our growing trade ties,” the minister said in response to a question.

Responding to another question on the mini trade deal, Goyal said “it was too mini” to really merit any great effort on both sides. “We have even forgotten most of those issues. We are looking at much, much bigger ambitions in our trade with the US.”

“While of course, we are doing free trade deals, we’ve concluded and entered into force free trade deals with Australia and the UAE. We are in active dialogue with the UK, Canada, Israel, and the EU. The United States is currently not looking at any free trade deals with any country whatsoever, as a matter of their political policy,” the minister said when asked about the prospects of a free trade deal.

“The FTA is not on the table,” he asserted.