New Trade Clause May Shield India from Future US Tariff Changes
What Happened
India and the US are discussing a "forward most-favoured-nation (MFN)” clause as part of their proposed trade agreement. The mechanism would allow India to protect any tariff concessions secured now if the US later lowers tariffs for other countries or changes its tariff structure, helping preserve India's competitive advantage in the US market. Commerce Minister Piyush Goyal is in the US for talks aimed at finalising an interim trade deal.
Key Takeaways
The proposed clause could provide Indian exporters greater certainty by ensuring that future US trade deals with other countries do not dilute the benefits India negotiates today.