India-US deal to include Bangladesh-style zero-duty textile access, Goyal says
India-US deal to include Bangladesh-style zero-duty textile access, Goyal says
Commerce Minister hints the India-US trade framework will grant Bangladesh-style zero-duty textile access, signaling a win for exporters.
India-US negotiations are moving toward a framework that could include a Bangladesh-style zero-duty textile access provision, Commerce Minister Piyush Goyal indicated. The potential clause would allow Indian textile products to enter the US market with zero tariffs, mirroring a setup associated with Bangladesh and aimed at boosting export competitiveness. The remarks come as both sides push to advance a bilateral trade agreement framework that has been under discussion for months.
If finalized, the provision would mark a significant milestone for Indian exporters who have sought broader market access as tariff lines evolve under the evolving trade framework. The discussions are part of a broader package described by the two governments as a reciprocal, mutually beneficial set of trade measures designed to deepen commercial ties.
The framework also references other strategic elements, including India’s commitments to purchase US energy products and other goods over the next five years, underscoring energy and industrial goods as focal points of the relationship. While the zero-duty textile access would offer a direct boost to exports, observers caution that eligibility rules, origin criteria, and safeguards will determine how transformative the clause proves in practice.
Analysts note that a Bangladesh-style approach could alter competitive dynamics in the textile supply chain, potentially affecting producers in other textile-exporting countries as negotiations continue. Final text will require careful negotiation by both governments and approval from respective authorities before any tariff arrangements take effect.
