Piyush Goyal Addresses Tariff Talks During Upcoming UAE Visit

Commerce and Industry Minister Piyush Goyal recently clarified that the ongoing discussions about tariffs between India and the United States are not confrontational. Instead, he described them as part of a collaborative effort to resolve issues amicably. In a press briefing at the Mumbai BJP office, Goyal emphasized the friendly relations between the two nations and their leaders, expressing optimism for a resolution in the near future.

The Minister noted that talks have been progressing for several months, highlighting a personal connection when he mentioned that U.S. President Donald Trump extended birthday wishes to Prime Minister Narendra Modi. This exchange underscores the cordial relationship both countries share, despite existing challenges.

Upcoming Visit to UAE

On September 18 and 19, 2023, Goyal is set to visit the United Arab Emirates, where he will co-chair the 13th India-UAE High Level Task Force on Investments. During this visit, he will engage with leading figures and CEOs from various sectors. The agenda includes reviewing the Comprehensive Economic Partnership Agreement (CEPA) and exploring new investment opportunities.

Government sources have indicated that Goyal plans to meet with Dr. Thani bin Ahmed Al Zeyoudi, the UAE’s Minister of Foreign Trade, to discuss strategies for accessing African markets. This initiative aims to bolster India’s exports and mitigate risks associated with global geopolitical uncertainties, including the impact of U.S. tariffs.

While in the UAE, Goyal will be accompanied by representatives from diverse sectors. The visit is expected to expedite the development of the Bharat Mart, a project initiated by the UAE’s logistics company DP World. The foundation stone for Bharat Mart was laid on February 14, 2024, by Modi and Sheikh Mohamed bin Rashid Al Maktoum, the Vice President and Prime Minister of the UAE.

Bharat Mart and Future Trade Goals

The Bharat Mart at the Jebel Ali Free Trade Zone in Dubai is envisioned as a marketplace that will provide Indian traders, exporters, and manufacturers with access to markets across the Middle East, Africa, and Eurasia. It aims to combine the advantages of free zone and mainland retail markets, leveraging DP World’s world-class logistics capabilities. The completion of this facility is anticipated by 2026.

Sources suggest that the Indian government plans to establish additional Bharat Marts to further extend the reach of Indian goods to international markets, including developed nations. Notably, China currently operates twelve Dragon Marts in Africa, highlighting the competitive landscape.

On August 29, 2023, Goyal and Al Zeyoudi held a bilateral meeting to strengthen the CEPA, aiming to boost bilateral trade towards a target of $100 billion for non-oil and non-precious metals trade by 2030. Their discussions covered collaboration in emerging sectors such as renewable energy, digital infrastructure, supply chain resilience, and healthcare.

Both ministers emphasized the importance of timely trade data sharing to enhance monitoring under the CEPA. They agreed to convene the Sub-Committee on Services within two months to address market access and regulatory issues, ensuring these matters are resolved swiftly through the CEPA Joint Committee.

The ongoing commitment from both nations to engage in constructive dialogue reflects a strong partnership that aims to navigate existing challenges and foster economic growth. As India and the U.S. continue these discussions, the outcome could significantly influence trade dynamics in the region and beyond.