India Should Avoid Rushing into US Trade Deal, Experts Warn

India should avoid rushing into a trade deal with the US that compromises core sectors like agriculture, experts say. The US has imposed tariffs on 24 countries and the EU, and is currently negotiating with over 20 countries. India should tread cautiously while negotiating the pact, as Trump's trade threats are rapidly losing credibility and countries are resisting his one-sided terms. A hasty deal under pressure could have irreversible consequences, experts warn.

India is facing pressure to finalize a trade deal with the United States, but experts are cautioning against rushing into an agreement that could compromise core sectors like agriculture. The US has imposed tariffs on 24 countries and the European Union (EU), with tariffs as high as 50% on Brazil [1]. The US is currently negotiating with over 20 countries and seeking concessions from more than 90, but many nations are resisting one-sided terms, urging India to proceed cautiously [1].

The Global Trade Research Initiative (GTRI) warns that the US's aggressive tactics, including imposing tariffs on key partners like the EU, highlight the risk of unbalanced agreements. Despite US pressure, many nations are resisting Trump's trade deals that demand tariff cuts without reciprocal US concessions, mandate guaranteed purchases of American goods, and leave the door open for future tariffs even after a deal is signed [1].

India and the US were aiming to finalize an interim deal by July 9, but negotiations are ongoing [2]. A team of Indian trade negotiators will soon visit Washington to further talks for the proposed Bilateral Trade Agreement (BTA) [2]. Experts advise India to stay the course and avoid trading away core sectors like agriculture, warning that a hasty deal under pressure could have irreversible consequences, especially when such agreements may not survive the next shift in US politics [1].

The India-Canada interim trade deal, which was stalled due to political tensions, is back on the table after a lull of nearly two years. The deal, which was in the works for years, could help India secure access to raw materials and advance negotiations on services, investment, and skilled worker mobility [3]. Experts suggest that an early harvest deal between India and Canada could focus on sectors where complementarities are strong and sensitivities low, serving as a confidence-building measure to re-establish momentum for broader economic engagement [3].

India should tread cautiously while negotiating the trade pact with the US, as Trump's trade threats are rapidly losing credibility and countries are resisting his one-sided terms. A hasty deal under pressure could have irreversible consequences, experts warn.

References:
[1] https://m.economictimes.com/news/economy/foreign-trade/india-should-avoid-rushing-for-trade-pact-with-us-warn-experts/articleshow/122420481.cms
[2] https://www.business-standard.com/economy/news/india-signals-trade-deal-talks-with-us-still-on-ahead-of-august-1-deadline-125071000908_1.html
[3] https://www.business-standard.com/specials/news/india-canada-interim-trade-deal-back-on-the-table-after-2-years-of-tensions-125070801388_1.html