a report by the Global Trade Research Initiative (GTRI) suggests that India must stay firm and avoid trading away its core sectors, especially agriculture. GTRI also suggests that India should refrain from trade deals despite increasing pressure from the United States.
Representational Image. File Pic
Amid the global trade instability and concerning geopolitical situations, a report by the Global Trade Research Initiative (GTRI) suggests that India must stay firm and avoid trading away its core sectors, especially agriculture. GTRI also suggests that India should refrain from trade deals despite increasing pressure from the United States under President Donald Trump's administration.
The report by GTRI also warns India that entering into a trade agreement under duress could lead to "irreversible consequences", particularly when such deals may not survive a change in the US political landscape, as per news agency ANI.
The GTRI report also says, "India should stay the course and avoid trading away core sectors like agriculture. A hasty deal under pressure could have irreversible consequences, especially when such agreements may not survive the next shift in US politics."
GTRI noted that Trump's aggressive trade threats are losing credibility. Despite over three months of sustained pressure, only two countries, the United Kingdom and Vietnam, have agreed to the US's "one-sided trade terms". Other nations, including Japan, South Korea, the European Union, and Australia, have resisted the demands.
These demands are part of what GTRI described as MASALA deals – Mutually Agreed Settlements Achieved through Leveraged Arm-twisting.
The report suggested that these types of agreements typically require other countries to cut tariffs without reciprocal concessions from the US. The deals require commitment to guaranteed purchases of American goods and still leave room for the United States of America to impose additional tariffs in the future, as cited by ANI.
The Trump administration has adopted punitive measures because of the limited success in pushing these terms. Earlier on 7 July, Trump had announced 25 per cent tariffs on imports from Japan and South Korea. Just days later, on 12 July, it threatened 30 per cent tariffs on products from the EU and Mexico, even while talks are still ongoing with these nations.
The GTRI report has been encouraging India to acknowledge that it is not the only country under such strain. The United States is presently negotiating trade agreements with over 20 countries and demanding concessions from more than 90.
However, most people are opposing these MASALA agreements, recognising that they are politically motivated and provide little long-term predictability in foreign trade.
(With ANI Inputs)
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