India wants free trade deal with US

India is pursuing a strategic mineral partnership agreement with the United States, Indian Commerce Minister Piyush Goyal said recently, expressing hope for talks on a broader trade agreement between the two countries.

Indian Commerce Minister Piyush Goyal and his US counterpart Gina Raimondo. (Source: Reuters)

Speaking to reporters in New Delhi, Mr. Goyal said that he has proposed converting the memorandum of understanding (MoU) into a strategic mineral partnership and considers it as a starting point for a free trade agreement (FTA).

Earlier this month, India and the US signed an MoU to cooperate on supply chains related to lithium, cobalt and other strategic minerals used in electric vehicles and clean energy applications.

The memorandum of understanding falls far short of a full mineral trade deal that would allow India to benefit from a $7,500 US electric vehicle tax credit.

Rare earth elements and minerals are playing an increasingly important role in clean energy technologies, such as electric car batteries. However, the US will face supply gaps as it tries to meet the growing demand of the electric vehicle industry.

Last year, the United States and Japan reached a trade agreement on critical minerals aimed at strengthening supply chains. The agreement between the United States and Japan includes commitments not to impose export tariffs on critical minerals shipped between the two countries.

(according to VNA)

Source: https://baoquocte.vn/an-do-muon-co-thoa-thuan-thuong-mai-tu-do-voi-my-290759.html