US trade deal will protect all sensitive Indian interests, says Piyush Goyal

New Delhi: Commerce and Industry Minister Piyush Goyal on Thursday said India's bilateral trade deal with the US would protect all sensitive interests of the country, asserting that people would "celebrate" the agreement once its details are made public.

He said that the opposition parties who are criticising the agreement lack understanding and knowledge about the subject.

Goyal expressed confidence that when the details of the deal are released, the people of India will recognise that the sensitive interests of farmers and other stakeholders have not been compromised and that India will be placed at a strong comparative advantage.


"The US free trade deal is sometimes sought to be politicised by a few elements... because of lack of understanding and lack of knowledge. Details are not yet fully out...I do not know what they (opposition parties) criticise.

"But I have the courage of conviction to announce boldly that the US trade deal, once details are out, the people of India will celebrate that not a single sensitive interest of our commerce or any stakeholder has been compromised. On the contrary, India will stand at a very strong comparative advantage, and trade is about comparative advantage," Goyal said here at the ISID-IDRA national conference.

Congress has raised concerns on multiple occasions over the deal. It has demanded that the India-US interim trade agreement be put on hold.

India and the US, in February, announced finalisation of the framework for the first phase of the bilateral trade agreement (BTA). However, changes in the tariff landscape in the US have led to further negotiations on the pact.

India is seeking lower tariffs for its goods in the US market than its competitor nations such as Bangladesh, Vietnam and Cambodia.

The minister added that trade is fundamentally about comparative advantage and competitiveness, rather than absolute numbers alone.

Many developed countries had structured their tariff schedules to impose high duties on labour-intensive goods, using them as negotiating instruments, he said.

Goyal also said that India walked out of the RCEP (Regional Comprehensive Economic Partnership) agreement as it would have severely impacted India's manufacturing sector.

India, in November 2019, decided not to join the mega free trade agreement RCEP as the pact was not addressing its concerns.

The RCEP members included 10 ASEAN members (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam) and their six free-trade pact partners: Australia, China, India, Japan, South Korea and New Zealand.

RCEP would have been a death knell for manufacturing in India, he said, adding that the pact could have turned India into "a nation of salesmen and salesgirls, marketing Chinese goods in India".

Further, Goyal said that quality, global market access, economies of scale and inclusivity are four key differentiators that would accelerate the transformation of India's industrial landscape.

With markets opening across the world through free trade agreements, India must compete for market share, expand its global presence and leverage preferential market access, he said.

He added that the country's trade agreements were not limited to reducing tariffs, framing rules of origin or securing market access.

They were comprehensive partnerships that considered India's competitive strengths, identified opportunities for exports, protected sensitive sectors and facilitated access to high-technology products, graphics processing units (GPUs), memory technology, medical technology and other goods required for development, Goyal said.

He also said that the nine free trade and bilateral trade agreements finalised by the government had opened up preferential market opportunities in economies with an aggregate GDP of USD 60 trillion, compared with USD 10 trillion covered by agreements concluded before 2014.

He said that the earlier agreements were largely with countries competing with India, whereas the current approach sought to foster complementary economic relationships. The minister highlighted the growing international recognition of Indian talent and skills.

Recalling a conversation with the German foreign minister regarding the migration agreement between India and Germany and the requirement for 90,000 Indians annually, Goyal said that he was told Germany needed substantially more Indian talent.

He cited the presence of Indian professionals in senior positions at Fortune 500 companies and among developers of cutting-edge technologies as evidence of the capabilities of India's workforce.

On climate change, he stressed that climate actions must be guided by the 'polluter pays principle' and 'common but differentiated responsibilities', with adequate financial and technological support for developing countries.

He highlighted that 60 per cent of India's installed electricity capacity came from green and renewable sources, while coal remained essential for energy security and affordable power.