*India to Gain US Duty-Free Access for Garments Made with American Cotton: Piyush Goyal*
India will receive concessional duty access to the United States for garments manufactured using American yarn and cotton under the proposed interim trade agreement with Washington, Commerce and Industry Minister Piyush Goyal has said.
Speaking on the sidelines of a start-up event on Thursday, Goyal indicated that India would secure treatment comparable to that currently extended to Bangladesh under its trade arrangements with the US. He stated that whatever benefits Bangladesh had obtained would also be incorporated into India’s final agreement.
India and the US have finalised a framework for the first phase of a bilateral trade agreement, which is expected to be implemented in March. According to the minister, the framework would translate into detailed provisions once the interim agreement is formally concluded.
Under the proposed arrangement, Indian companies sourcing yarn from the US to manufacture garments for re-export to the American market would receive duty-free access, mirroring the concessions available to Bangladeshi exporters. Goyal said this provision formed part of the US-Bangladesh agreement and would similarly feature in India’s pact. He added that the move would have no adverse impact on Indian cotton farmers.
He further clarified that there would be no quota restrictions on the import of raw materials such as cotton. The US-Bangladesh reciprocal trade pact currently allows tariff-free exports of apparel and textiles to the US if manufacturers use American-produced cotton or man-made fibre inputs.
At present, Bangladesh-made garments face a 31% levy in the US market, comprising a 12% most-favoured-nation-plus duty and a 19% reciprocal tariff. When US fibres are used, the duty falls to 12%. Under the bilateral pact, Washington is set to lower reciprocal tariffs on Bangladesh to 19% from 20%, narrowing the tariff differential between New Delhi and Dhaka to one percentage point.
Bangladesh is the world’s second-largest garment manufacturer and remains a key competitor to India in the US textile and apparel market, alongside China and Vietnam.
Goyal noted that India was targeting a trade figure of US $ 50 billion under the agreement. He also observed that American businesses were increasingly viewing India as a trusted partner in global supply chains.
read more:- The rupee closed 02 paise higher at 90.64 against the dollar.
Regards
Team Sis
Any query plz call 9111677775
https://wa.me/919111677775
