India should take cues from US-UK trade deal to ensure fair terms in US trade deal: GTRI
Economic think tank Global Trade Research Initiative (GTRI) has suggested that India should take cues from the US-UK trade pact and exercise caution while negotiating an agreement with America to ensure that the deal is reciprocal, balanced, and not driven solely by political considerations. It said that the limited trade deal announced between the US and UK on May 8 offers clues about the kind of trade arrangements Washington may pursue with other major partners, most notably India. Further, it stated that, a closer look reveals that while the UK has made sweeping tariff concessions to America, the US has offered far less in return.
It has raised caution saying that if the UK-US deal sets the template, India can expect growing US pressure to finalise a mini-deal of its own - focused on tariff cuts and key strategic commitments rather than a full free trade agreement (FTA) that may come much later. It has warned that India may be asked to reduce tariffs on a basket of sensitive agricultural products, including soybeans, ethanol, apples, almonds, walnuts, raisins, avocados, spirits, many GM (genetically modified) products and meat and poultry. Besides, tariff concessions on automobiles are also expected, as India has already agreed to reduce duties on select UK vehicles from 100 per cent to 10 per cent under its recent agreement.
Suggesting that the country must tread cautiously while negotiating the proposed bilateral trade agreement (BTA) with the US, It said that the US is also expected to push India for large-scale commercial purchases. These could include Oil, LNG, military and civilian aircraft from Boeing, helicopters, or even nuclear reactors. A team of senior officials from India is expected to again visit Washington this month to hold discussions with their US counterparts on the proposed BTA.
