FTA Negotiations Underway With Several Countries, Including US, Says Piyush Goyal

Minister of Commerce and Industry Piyush Goyal on Monday said that India is currently discussing free trade agreements (FTAs) with a number of countries. The list of countries include the United States, New Zealand, Oman, Peru, Chile, and the European Union.

Apart from these countries, Qatar and Bahrain are also eager to enter into trade pact negotiations with India, Goyal added. In August, India and the Eurasian Economic Union (EAEU) comprising Armenia, Belarus, Kazakhstan, Kyrgyz Republic and Russia signed Terms of Reference (ToR) to begin negotiations on an FTA, he said.

"Talks are going with the US (for a trade agreement). Talks are also underway with the EU, New Zealand, Oman, Peru and Chile," he said at UP International Trade Show, Greater Noida.

Last week, the minister spearheaded an official delegation to New York for trade talks. After that meeting, India and the US decided to continue negotiations for early conclusion of a mutually beneficial bilateral trade agreement.

Both sides held constructive meetings on various aspects of the trade deal. During the visit, the minister held meetings with United States Trade Representative (USTR) Jamieson Greer and US Ambassador-designate to India Sergio Gor.

The crucial discussions took place after the US imposed a 25% reciprocal tariff and an additional 25% penalty on Indian goods entering the American market for purchasing Russian crude oil. At present, total a total of 50% additional import duty is imposed on Indian goods.

In February this year, leaders of the two countries directed officials to negotiate a proposed Bilateral Trade Agreement (BTA).

It was planned to conclude the first tranche of the pact by the fall (October-November) of 2025. So far, five rounds of negotiations have been held. The pact is aimed at more than doubling the bilateral trade to $500 billion by 2030 from the current $191 billion.

The US remained India's largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at $131.84 billion ($86.5 billion exports).

The US accounts for about 18% of India's total goods exports, 6.22% in imports, and 10.73% in the country's total merchandise trade.

Goyal also informed that the Trade and Economic Partnership Agreement (TEPA) between India and the four European nations bloc, European Free Trade Association (EFTA) will come into force from Oct. 1, 2025. It was signed on March 10, 2024.

Under the pact, India has received an investment commitment of $100 billion in 15 years from the grouping while allowing several products, such as Swiss watches, chocolates, and cut and polished diamonds, at lower or zero duties.

"This pact will benefit Indian traders", Goyal said, adding these agreements reflect increasing interest of the developed world towards India. Further, the commerce minister called for buying Made in India goods to promote domestic manufacturing.

(With PTI Inputs)