India, US continuing trade talks: Commerce Secretary

India is in ‘regular contact’ with the US for negotiating the proposed bilateral trade agreement (BTA), Commerce Secretary Rajesh Agarwal said on Thursday.

He said that both sides are committed to the framework deal that was agreed upon in February.

In February, both sides finalised contours for the first phase of the BTA.

However, changes in the tariff landscape in the US have led to further negotiations on the agreement between the two countries.

At present, the US has imposed an additional 10 per cent duty on Indian goods under a Section 301 probe on alleged forced labour concerns.

“We are engaged with the US side on the trade deal and our contacts are regular,” Agarwal told reporters here.

On the issue of the USA’s Russian oil tariff bill, the secretary declined to comment, saying it is a legislative process of the US, which is underway and is their internal process.

Earlier this month, the US Senate voted overwhelmingly to approve a bill to punish Russia and key buyers of its petroleum products, such as China and India, claiming that such trade helps fuel the Ukraine war.

This bill will allow US President Donald Trump to impose 100 per cent tariffs on goods from countries that are the top five importers of Russian oil and gas.

He said that a key outcome of a trade deal is that it brings in more stability and predictability in the trade relationship so that businesses can work along.

The commerce ministry said that India continues to actively engage with US authorities to resolve outstanding trade issues while working toward the early conclusion of the India-US BTA. On the bill, a source said that it is a matter of concern, but India is closely following developments and remains in touch with the US side at various levels and talks with them as reassuring.

The source also said that it is misleading and factually incorrect to link the reforms in UPI to India-US trade discussions.

Recently, Commerce and Industry Minister Piyush Goyal has said that the first tranche of the bilateral trade agreement between India and the US will come into operation as soon as the United States is able to ensure that India gets a comparative advantage over its competitors.

The US has imposed an additional 10 per cent tariff on a number of countries, including India, from July 24. Countries, including Sri Lanka, Bangladesh, Thailand, Cambodia, Vietnam, Indonesia and Malaysia, are major competitors of India in the US market.

Tariff advantage vis-a-vis these nations will give price competitiveness to Indian goods in the American market. India exported goods worth about $87 billion to the US in 2025-26.  Goyal and USTR Jamieson Greer held bilateral talks in June on issues related to the first phase of the agreement.

‘Exports to West Asia region rise 8.62% in July’

New Delhi: India’s exports to the West Asian region rose by 8.62 per cent year-on-year to $5.7 billion in July, despite global uncertainties, Commerce Secretary Rajesh Agrawal said on Thursday. Exports to the West Asian countries stood at $5.2 billion in the same month last year, as per the Government data.

The shipments to the region had declined for the first time in March due to the US-Iran conflict, but improved in April and further in May and June.

Agrawal said that trade is back to earlier levels with this region. The country’s exports to the UAE rose 10.15 per cent to $3.3 billion, but shipments to Saudi Arabia declined by 2.73 per cent year-on-year to $763.7 million.

Imports from the UAE and Saudi Arabia dipped during the last month. However, imports from Oman more than doubled to $1.57 billion. Indian exporters are using three ports (Duqm, Sohar and Salalah) in Oman, and the Port of Fujairah and Khor Fakkan Port in the UAE to push exports to the region.

Earlier, the Port of Jebel Ali in the United Arab Emirates used to handle a lot of cargoes for that region, but it has faced operational disruptions due to the ongoing crisis.

The US-Iran war has impacted the movement of ships carrying cargoes in international waters, particularly through the Strait of Hormuz. India normally exports goods worth about $6 billion every month to the region. 

INDIA-SACU PTA 

When asked why India has shifted its focus in trade negotiations from developed countries to the SACU group, the secretary said the world is increasingly integrating with the African continent, and India is starting with a preferential trade agreement (PTA).   (PNS)

On August 12, India and the South Africa-led SACU group signed a roadmap for launching negotiations for a preferential trade agreement in goods to boost economic ties.

The five members of SACU (South African Customs Union) are Botswana, Eswatini (formerly Swaziland), Lesotho, Namibia and South Africa.

Agarwal said that there are areas where India competes with the members, but there are sectors where both sides complement each other.

“It is a calibrated approach,” he said. India, in the last four years, has finalised free trade agreements with countries including Australia, the UAE, the UK, the EU, the EFTA bloc and New Zealand.