The Ministry is waiting for Washington to release the operational details of the TRQ framework
| Photo Credit:
MicroStockHub
The Textiles Ministry has begun internal discussions on how to deal with the tariff-rate quota (TRQ) concessions proposed by the US for competing textile and apparel exporters, including Bangladesh, Indonesia and Malaysia, under its new Section 301 forced-labour regime, with one of the options being to seek a similar dispensation for Indian exporters, sources said.Officials said that Indian exporters were likely to be able to meet the proposed sourcing requirements linked to US-origin textile inputs, just as competing countries would, and pricing should not be an issue of concern.“The Ministry is waiting for Washington to release the operational details of the TRQ framework and is likely to discuss the matter with the Commerce Department. The issue can be taken up with the US either as a separate bilateral engagement or as part of the ongoing India-US Bilateral Trade Agreement negotiations,” the source said.Penal dutiesOn July 23, the Office of the United States Trade Representative announced penal duties on imports from 60 economies, including India, following its Section 301 investigations into forced labour practices. These replaced the global 10 per cent tariffs under Section 122 that lapsed on July 24.While India, the UK, Canada, Pakistan, Bangladesh, Indonesia and 13 other economies were subjected to a 10 per cent additional tariff, 41 others, including China, Turkey, Vietnam and Brazil were hit with a higher 12.5 per cent duty.However, the USTR also introduced TRQs for specified imports of textiles and apparel made from US-origin cotton or fibres from Bangladesh, Cambodia, Indonesia and Malaysia, allowing limited quantities to enter at lower duty rates. “Indian exporters have expressed concern that the absence of a similar arrangement for India could erode their competitiveness in the US market, particularly in product segments where the beneficiary countries compete directly with Indian manufacturers. Some have said that securing a comparable carve-out should be a priority in discussions with the US to prevent any loss of market share,” the source said.According to sources, the Textiles Ministry believes meeting the eligibility conditions linked to the use of US-origin textile inputs should not pose a major challenge for Indian exporters. “Since the competing countries benefiting from the proposed carve-out would also be required to comply with the same sourcing criteria, Indian exporters are not expected to face any cost disadvantage on account of the input requirements,” the source added.Published on July 29, 2026
