The Ministry of Textiles has initiated internal discussions on addressing the tariff-rate quota (TRQ) concessions proposed by the United States for competing textile and apparel exporting countries under its new Section 301 forced-labour regime. One of the options under consideration is seeking a similar TRQ arrangement for Indian exporters through bilateral negotiations.
According to official sources, the Ministry is awaiting the release of the operational framework for the proposed TRQ mechanism by the US. The issue is expected to be discussed with the Department of Commerce and could be pursued either as a standalone bilateral matter or as part of the ongoing India–US Bilateral Trade Agreement (BTA) negotiations.
The Office of the United States Trade Representative (USTR) on July 23 announced additional tariffs on imports from 60 economies following Section 301 investigations into forced labour practices. These measures replaced the temporary 10 per cent tariffs imposed under Section 122, which expired on July 24.
Under the revised tariff structure, India, along with the UK, Canada, Pakistan, Bangladesh, Indonesia and several other economies, is subject to an additional 10 per cent tariff, while 41 countries, including China, Turkey, Vietnam and Brazil, face a higher 12.5 per cent duty.
The USTR has, however, proposed tariff-rate quotas for selected textile and apparel imports manufactured using US-origin cotton or fibres from Bangladesh, Cambodia, Indonesia and Malaysia. The scheme would allow specified quantities of these products to enter the US market at lower tariff rates, subject to sourcing conditions.
Industry representatives have expressed concern that the absence of a similar TRQ arrangement for India could affect the competitiveness of Indian textile and apparel exports in the US market, particularly in product categories where Indian manufacturers compete directly with exporters from beneficiary countries.
Officials said the Textiles Ministry believes Indian exporters would be capable of meeting the proposed sourcing requirements linked to US-origin textile inputs, similar to competing countries, and does not expect the conditions to create any significant cost disadvantage.
The Ministry is expected to engage with the US government to explore the possibility of securing a comparable concession aimed at safeguarding India’s market share in the US textile and apparel sector.
