US-India trade deal soon? Piyush Goyal hints early agreement at key bilateral forum

India is ready to sign a limited trade deal with the United States even 'tomorrow' as the whole package is nearly ready and can be finalised at any time, Union Commerce Minister Piyush Goyal said on Tuesday, in a big admission just two months before Americans head to a hotly contested presidential poll.

Speaking at the US-India Strategic Partnership Forum's 3rd Annual Leadership Summit, Goyal indicated New Delhi's willingness to seal a limited trade deal with Washington before or after the November 3 presidential election. 

Noting that there were pending issues to solve and finalise in February during Trump's India visit, Goyal said that the disruption caused due to the COVID-19 pandemic led to the loss of 'valuable time'. He asserted that any deal right now can be 'foundational' in nature that will help a comprehensive trade deal in the future.

"I spoke with Ambassador Lighthizer (US Trade Representative). We agree that we can look at doing it (signing a trade deal) before elections also or soon after. The entire package is near ready and can be finalised at any time when the local political situation in the US permits them to. I'm open to signing up (the deal) tomorrow," the Commerce Minister said.

Moreover, he asserted the such a trade deal will be a 'win-win situation' for both India and the US. "It is in the interest of India and the US to deepen our strategic partnership with this trade deal. It will open the doors to starting a dialogue on a larger bilateral engagement and I do hope we can move to the next stage of larger engagement for a free trade agreement," the minister said.

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Significance of New Delhi's signals

Goyal's remarks hold significance as President Donald Trump faces a tight race with his Democratic rival Joe Biden and his craving to show success to an electorate — fatigued with the worst Coronavirus outbreak in the world, deep recession, massive unemployment, and raging social unrest — rests on touting any success on the trade front. Trump has championed 'fair and reciprocal' matra in international trade and has threatened to slap tariffs to countries he feels 'take advantage of the US'.

Among many issues like security and China that put New Delhi and Washington on a parallel, trade in a slant. The Trump administration has withdrawn trade preferences that India has for decades used to boost exports to the large American market. India enjoys a trade surplus with the US, a point of contention for Trump who has accused New Delhi of imposing high tariffs on American imports.

The US has so far signed a 'limited trade deal' with China and a more comprehensive one with countries like Japan, Canada, and Mexico.

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