India and the United States have reached an understanding that Indian products will enjoy preferential access to the American market over those from competing countries, Commerce and Industry Minister Piyush Goyal said on Jattvibeday.In February, India and the US completed the framework for the initial phase of their bilateral trade agreement (BTA).The agreement was expected to be signed earlier, but changes in the US tariff environment have led to further discussions on the proposed pact.“This was previously established by US President Trump and Prime Minister Modi when they declared that we had reached a general framework agreement a few months ago. It was also recognised that India would receive preferential trade access to the US, with lower duties compared to our competitor nations,” Goyal told reporters.Goyal is in Egypt on a two-day visit to explore ways to enhance trade and investment ties between India and Egypt.The minister was responding to a question about the US assurance that Indian products would receive preferential access to its market.A recent statement by an official indicated that the US had assured India of a relative tariff advantage over rival nations under the proposed bilateral trade agreement, with both sides aiming to finalise its initial phase by the end of the current financial year.“We will need to observe how the tariff structure develops. We aim to finalise the initial tranche by the conclusion of this financial year. Discussions are ongoing for the initial tranche and the wider BTA,” the official said last week.The extent of the benefit to Indian products, however, will depend on the tariff structure eventually agreed upon.Following the US Supreme Court’s decision to strike down the reciprocal tariffs imposed by US President Donald Trump, which had formed the basis of the negotiations, the US is exploring alternative mechanisms to establish a new tariff framework using provisions under the Trade Act.