The India-US trade deal is expected to significantly enhance the GDP of both nations, with discussions currently underway between Commerce Minister Piyush Goyal and U.S. Trade Representative Howard Lutnick. The US-India Business Council (USIBC) highlights the importance of quickly removing non-tariff barriers. However, caution is advised regarding concessions that could impact India’s trade policies and agreements amidst these negotiations.
The India-US trade deal, deemed long overdue by the US-India Business Council (USIBC), is anticipated to enhance the economic growth of both nations. As discussions commence between Commerce Minister Piyush Goyal and U.S. Trade Representative Howard Lutnick, USIBC advocates for the prompt dismantling of non-tariff barriers and bureaucratic obstacles that inhibit market access. USIBC President Atul Keshap emphasized the necessity for a bilateral trade agreement (BTA), stating it would significantly boost GDP for both countries and facilitate full market access.
In their first meeting in Washington, Goyal and Lutnick prepared to address pressing trade challenges, including imminent U.S. tariffs on nations like India. Prime Minister Narendra Modi and President Donald Trump recently committed to negotiating a mutually beneficial trade agreement within the next eight months. The timing is critical as the Trump administration plans to impose reciprocal tariffs to align with international trade standards.
Keshap noted the longstanding need for structured investment and trade relations, pointing out that India currently accounts for merely 2.5% of America’s trade volume. He advocated for creating a fair trading environment with open market access, efficient dispute resolution, and stable taxation policies to foster investment and job growth in both nations. Nevertheless, caution has been advised regarding a comprehensive Free Trade Agreement (FTA) with the U.S., given potential implications for previous agreements.
A Delhi think tank cautioned that the U.S. often revises agreements, as evidenced by its replacement of NAFTA with the USMCA due to perceived inadequacies. Presently, the U.S. has initiated 25% tariffs on imports from Canada and Mexico, raising concerns about its reliability as a trading partner. The think tank warned that the U.S. might seek additional concessions from India, attempting to influence government procurement practices, agricultural policies, and patent protections, areas that India has historically resisted.
The impending trade agreement between India and the United States signifies a pivotal moment for enhancing bilateral trade relations. It aims to stimulate economic growth while addressing significant challenges such as non-tariff barriers and trade tariffs. Nonetheless, India must tread carefully to safeguard its existing trade agreements and ensure that negotiations do not compromise its economic interests. As both nations move forward, fostering a balanced approach will be crucial to achieving mutual benefits.
Original Source: www.business-standard.com
