Latest news with #FTAs
The Star
14 hours ago
- Business
- The Star
Thai DPM Pichai confident of positive outcome from US tariff negotiations, awaits response tonight (July 31)
BANGKOK: Deputy Prime Minister and Finance Minister Pichai Chunhavajira on Thursday (July 31) provided an update on the ongoing tariff negotiations with the United States, revealing that Thailand had submitted its final draft of the tariff proposal. He expects to receive an unofficial response on the matter later this evening, ahead of the critical August 1, 2025 deadline. 'We've been working on this since early this morning, maintaining continuous communication with the US. We've addressed their feedback from yesterday and are now fine-tuning the details. It's a delicate matter, but we're doing our best. While it's challenging, I'm confident we will receive good news tonight,' said Pichai. He explained that while the result would not be officially confirmed tonight, it would serve as a signal that the uncertainties are diminishing, providing Thailand with clearer direction for planning its economy for the second half of the year. Pichai emphasised that the proposal was not based on concessions from Thailand alone, but rather the result of careful and comprehensive negotiations that aimed at a "win-win" situation for both countries. The proposal includes reducing tariffs on certain imports, which Thailand argued is not a new issue, as the country already has Free Trade Agreements (FTAs) with several nations under similar terms. He also mentioned that Thailand has proposed the purchase of goods it already needs, such as items it cannot produce domestically or does not have sufficient quantities of, and only if the prices are competitive. In addition, Thailand has suggested joint investment cooperation between both nations, especially in areas of US interest, such as infrastructure and advanced technology. Non-Tariff Barriers (NTBs), including regulatory complexities and approval processes, were also discussed, with Thailand acknowledging that these obstacles needed to be addressed regardless of the tariff issue, as they hinder the country's competitiveness. Pichai further stated that if the response from the US is favourable, it would be a positive signal for Thailand's economy, exports, and short-to-medium-term investments. However, if the outcome is less favourable, he urged the public to understand that the Thai team had worked thoroughly and carefully on all aspects. The government has already prepared measures to support affected sectors, including improving the competitiveness of small businesses, supporting the manufacturing sector, and enhancing cost structures to remain competitive with other Asean countries. Lavaron Sangsnit, Permanent Secretary of the Ministry of Finance, also confirmed that Thailand's final proposal had been submitted to the US, with no further amendments being made. He expressed hope for a response later this evening, adding, 'We're waiting for the outcome today, and I believe it will be good news.' The Ministry of Finance and the negotiation team are fully prepared and confident that the proposal will meet the needs of both economic and trade cooperation, as well as foster long-term collaboration, he said. - The Nation/ANN
Hindustan Times
a day ago
- Business
- Hindustan Times
Committed to fair, balanced deal, says India after Trump announces 25% tariffs
India remains intensely engaged with the US to clinch the comprehensive bilateral trade agreement by autumn 2025 despite President Donald Trump's announcement of 25% tariffs plus penalties starting August 1, people aware of the matter said on Wednesday. Piyush Goyal, India's commerce and industry minister, during a Bloomberg Television interview in London, UK, on Thursday, July 24, 2025. (Bloomberg) In a brief statement, the commerce ministry said it had 'taken note' of Trump's statement and was studying its implications while reaffirming India's commitment to a 'fair, balanced and mutually beneficial' trade deal that protects farmers, entrepreneurs and small businesses. 'The government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs,' the ministry said, adding that it 'will take all steps necessary to secure our national interest, as has been the case with other trade agreements including the latest Comprehensive Economic and Trade Agreement with the UK.' Indian officials and experts pushed back against Trump's characterisation of excessive trade barriers, arguing that his focus on goods trade deficit ignores the broader economic relationship where the US earns tens of billions more annually from services, education, and defence deals, and cited New Delhi's recent free trade agreements with developed economies such as Australia and the UK to demonstrate India's willingness to open up its market with protections for its vulnerable populations . People familiar with the negotiations said New Delhi expects Washington to follow Trump's announcement with a formal letter that would be analysed and responded to appropriately. The Indian negotiating team – which has held five rounds of in-person discussions with its American counterparts -- will in the meantime continue talks for a balanced deal, they added. One of the people aware of the matter pushed back against Trump's characterisation of India as maintaining excessive trade barriers, citing the recently signed free trade agreements with other developed economies including Australia and the United Kingdom where tariffs on most items were slashed. 'Hence, President Trump's generalisation that Indian tariffs are far too high, is not correct,' the person said. 'FTAs are win-win, and not one-sided.' The person highlighted Trump's focus on goods trade surplus while ignoring broader economic ties, saying: 'President Trump has said in a post on Truth Social – 'We have a massive trade deficit with India!!!' – which is just one side of the picture. Bilateral economic relationship is not only goods trade, it also includes trade in services, investments and other significant contributions to the US economy made by Indians.' According to government data, India had a $41.18 billion trade surplus with the US in 2024-25, exporting goods worth $86.51 billion and importing $45.33 billion of American merchandise. However, the people cited above argued this represented only a part of the bilateral relationship. The US gains significant revenue from financial, digital and e-commerce services, fees from students studying in America and defence deals, a second person explained. 'Such cooperation in services and contributions of Indians in American businesses have immense potential for further growth through BTA and other strategic cooperation, provided the US is not fixated with tariffs, and particularly with India's sensitive sectors, which are vital for the survival of millions of Indian subsistence farmers,' the person added. Ajay Srivastava, founder of Global Trade Research Initiative, said the US 'quietly rakes in $80-85 billion every year from India through education, digital services, financial operations, intellectual property royalties, and arms sales.' 'These massive earnings don't show up in the narrow goods trade statistics. When you factor them in, the US isn't running a deficit with India at all, it's sitting on a $35-40 billion surplus,' Srivastava added. The second person aware of the matter said India was negotiating a comprehensive bilateral trade agreement that included not just goods but 'other key sectors such as services, investments, non-tariff barriers, IPRs and customs facilitation.' 'We hope that a successful deal would help in balancing bilateral economic cooperation and prompt the Trump administration to remove reciprocal and punitive tariffs,' the person said. Industry leaders expressed concern about the tariff announcement's timing amid ongoing negotiations. Medical Technology Association of India chairman Pavan Choudary called Trump's move 'economically shortsighted and strategically misguided.' 'As a sovereign nation, India makes independent choices in defence and energy based on national interest and long-term strategic priorities. Attempting to punish these decisions through coercive trade measures is not only inappropriate but also counterproductive,' Choudary said. Agneshwar Sen, trade policy leader at EY India, warned the 25% tariff could directly affect key sectors including marine products, pharmaceuticals, textiles, leather and automobiles where bilateral trade had been 'especially robust.' However, Sen remained optimistic about ongoing negotiations, noting both countries were 'positively engaged' with the US team expected in India on August 24 for the sixth round of talks. 'I am confident that, considering our shared interests and history of cooperation, the two sides will be able to address these contentious issues constructively,' he said. Opposition slams Modi government Opposition parties criticised the government over the developments . Congress general secretary Jairam Ramesh said Prime Minister Modi should 'take inspiration from former prime minister Indira Gandhi and stand up to the president of the United States.' 'All that 'taarif' between him and 'Howdy Modi' has meant little,' Ramesh said, referring to Modi's 2019 rally with Trump in Houston. 'Mr Modi thought that if he kept quiet on the insults that the US President has hurled on India... India would get special treatment at the hands of President Trump. Clearly that has NOT happened.' Rashtriya Janata Dal MP Manoj Jha said his party was 'not very happy that it has happened under the rule of Prime Minister Modi,' while Communist Party of India MP P Sandosh Kumar described the tariffs as 'another insult to India.' DMK leader Tiruchi Siva demanded the prime minister answer questions about the tariffs in Parliament, saying lawmakers had 'not been taken into confidence.'
Indian Express
2 days ago
- Business
- Indian Express
India in trade talks with EU, other countries, minister tells Lok Sabha
India is actively pursuing trade negotiations with the European Union (EU), US, Australia, Sri Lanka, Peru, Chile and New Zealand, Minister of State for Agriculture and Farmers Welfare Ram Nath Thakur informed Lok Sabha on Tuesday. In a written reply to a question asked by CPI (M) member R Sachithanantham, Thakur said that with these trade discussions, India will focus to expand its global trade footprint and enhance competitiveness of Indian exports. 'At present, negotiations are ongoing on the India–European Union Free Trade Agreement, India–Australia Comprehensive Economic Cooperation Agreement, India–Sri Lanka Economic and Technology Cooperation Agreement, India–Peru Free Trade Agreement, India-Chile Comprehensive Economic Partnership Agreement, India–New Zealand Free Trade Agreement, India–USA Bilateral Trade Agreement and a similar approach has been followed while dealing with the United Kingdom to safeguard the interests of farmers and secure market access for our agri-products,' Thakur said. He said, 'In order to protect the interests of the farmers and domestic industry, including MSMEs, FTAs provide for maintaining sensitive, negative or exclusion lists of items on which limited or no tariff concessions are granted.' 'In addition, in case of surge in imports and injury to the domestic industry, a country is allowed to take recourse to trade remedial measures such as anti-dumping and safeguards on imports within the period as mutually agreed to by the parties under the FTAs. Likewise Rules of Origin, including product-specific rules are developed with stakeholder consultations,' he said.
The Print
3 days ago
- Business
- The Print
India must scale up manufacturing sector, establish its own robust supply chain: Official
'India needs to have partners to achieve high rates of growth. The country also needs to create its own supply chain. Global dynamics have now shifted from the Transatlantic to the Indo-Pacific. India needs to grow at a higher rate to meet the target of becoming a developed country by 2047,' Dammu Ravi, Secretary (Economic Relations), Ministry of External Affairs, said. India must scale up its manufacturing sector and establish its own robust supply chain, which will subsequently boost exports, the official added. Kolkata, July 28 (PTI) A top Ministry of External Affairs official on Monday emphasised the importance of partnerships to accelerate India's economic growth. Speaking at a session organised by the Merchants' Chamber of Commerce and Industry (MCCI) here, Ravi said the GDP of the country is growing. 'We are USD 4 trillion economy now. The country needs to grow at more than the current average growth rate of 6.5 per cent per annum to become a developed economy to meet that target', he added. He said the country has moved from a command economy to a liberalised economy. 'The openness had brought a boom in the economy. The private sector has leapt forward. The country also needs to do a lot', he added. Touching upon technological transformation, Ravi said the world has moved from the industrial revolution to an era driven by artificial intelligence (AI). 'We have entered an AI-driven era. Today, we talk about responsible AI. Rules are needed so that human values are not undermined,' he added. 'India needs to create an AI ecosystem, which requires state intervention to ensure uninterrupted power supply,' he said. On the issue of logistics, Ravi stressed the need to bring down costs. 'India's logistics cost is 12 per cent of GDP. This must be reduced to boost efficiency. Our industry needs to conquer overseas markets,' he said. Regarding Free Trade Agreements (FTAs), Ravi said they should be seen beyond exports and imports and valued at economic cooperation. PTI dc MNB This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Economic Times
5 days ago
- Business
- Economic Times
Be Ready to Export: India-UK FTA is a transformational leap
India's signing of its 13th Free Trade Agreement (FTA), this time with the United Kingdom, marks a watershed moment in our trade and economic journey. While India has previously signed important FTAs with Japan, Singapore, Australia and the UAE, the India-UK deal stands out for its depth, breadth, and long-term the full impact will play out over the next decade, early signs of transformation will be visible much sooner. This agreement is more than just a trade pact, it is a strategic shift in India's global trade posture. The Twin Impact: Tariffs and Trade Processes Most conversations around FTAs focus on tariff reductions, and rightly so. The India-UK FTA provides near-total elimination of duties (around 99%) on traded goods over time. For sectors such as textiles, gems and jewellery, leather, farm produce, and processed food, this opens vast new market opportunities in the UK. However, just as significant, and often underappreciated, is the simplification of trade processes. The promise of clearer tariff structures, reduced documentation burdens, and potential customs clearance within 48 hours could be a game changer. For many exporters, especially MSMEs, these process frictions are the real bottlenecks. Removing them will have an immediate impact. India's Expanding Trade Architecture With the India-UK deal, India now has 13 FTAs and around 6 Preferential Trade Agreements (PTAs) in place. Coupled with improving infrastructure such as industrial clusters, road-rail-port connectivity, and digitized logistics, we are well-positioned to accelerate our export-led is the time to scale up, not just capacity but ambition. MSMEs and Employment: The Hidden EngineThe FTA's greatest impact will likely be felt in labour-intensive, MSME-driven sectors. Industries such as textiles, handicrafts, food processing, and leather goods are key beneficiaries. These are also the sectors that create millions of these sectors through improved access, reduced costs, and better logistics has a multiplier effect, not just on exports, but on livelihoods across the country. Services and Skilled Mobility India's services sector, especially in IT, consulting, finance, education, and creative fields, depends heavily on the free movement of professionals. The India-UK FTA is expected to streamline visa regimes and ease temporary mobility, allowing talent to flow more India's financial services sector is already largely open to FDI, areas like accounting, auditing, and advisory could benefit from mutual recognition and regulatory alignment. A Clear Strategic Shift The India-UK FTA represents a philosophical and policy transition. India is clearly moving from protectionism to global integration, balancing domestic priorities with international agreement includes, Near-universal tariff elimination, Enhanced services and procurement access, Social and environmental safeguards, Commitments on investment and sets the stage for India's deeper integration into global value chains, especially at a time when supply chains are being redefined worldwide. Execution Will Be Key As with all policy shifts, implementation is everything. The success of this FTA depends on, Regulatory clarity and consistency, Industry alignment, Infrastructure support, And above all, execution at the ground level. The natural question arises: Are we ready? We faced the same question in 1991, when India opened its economy. History shows that we didn't just survive the change, we thrived. The India of today is far more prepared, resilient, and capable. A Bold Step Toward a Developed India This FTA is more than an economic arrangement, it is a strategic and symbolic move. It reflects India's aspiration to lead, to compete, and to be counted among the world's most open, dynamic, and forward-looking economies. Credit must go to our leadership for taking this bold, long-term view, and aligning it with the needs of industry, employment, and inclusive growth. The message is clear: the world is opening its markets to India. It's time for us to step forward, and lead from the front.
