Piyush Goyal Recalls Tough India-US Trade Talks, Describes Process As 'Nightmare'

Union Commerce and Industry Minister Piyush Goyal on Thursday described the proposed India-US bilateral trade agreement as a "very fair and equitable" deal, saying only the final "1 per cent" of negotiations remains before the pact can be concluded. He said most of the key issues, including tariff concessions and the removal of non-tariff barriers, have already been settled, with the remaining challenge centred on providing India with a legally sustainable preferential advantage in the US market.

Speaking at an event on the next chapter of the India-Japan partnership, Goyal said the objective of any free trade agreement is to secure preferential market access over competing economies. He said India views the proposed agreement through the lens of gaining an edge over regional competitors, including neighbouring countries and Southeast Asian economies. According to him, developed economies such as the European Union, the United Kingdom, Switzerland, Japan and South Korea have also negotiated trade agreements based on similar principles of competitiveness and relative advantage.

Explaining the final hurdle in the negotiations, Goyal said the United States is working to identify a legally tenable mechanism to extend India a comparative advantage following developments related to the International Economic Emergency Powers Act (IEEPA). He noted that after IEEPA-related tariffs were struck down, Washington has had to determine an alternative legal framework that would allow it to provide preferential access to Indian exports without running into legal challenges.

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The minister said the substantive components of the agreement have largely been finalised. These include concessions across various categories of goods as well as measures aimed at reducing or eliminating non-tariff barriers that affect bilateral trade. He expressed confidence that once the remaining legal issue is resolved, both countries would be in a position to conclude the agreement.

Goyal also reflected on the negotiation process, recalling that the only "nightmarish" aspect for the Indian delegation was coordinating discussions across the significant time difference between New Delhi and Washington. Despite the logistical challenges, he said he enjoyed an excellent working relationship with his American counterparts and praised the cooperative spirit that characterised the negotiations.

India and the United States began negotiations for a comprehensive Bilateral Trade Agreement (BTA) in February 2025. Both countries have since finalised the framework for an interim agreement while continuing discussions on the remaining issues. The proposed pact is expected to deepen economic ties, expand market access for businesses in both countries and strengthen the broader strategic partnership between New Delhi and Washington.

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