GTRI Urges India to Halt U.S. Negotiations and Retain Economic Integrity
The GTRI advises India to stop negotiations with the U.S. and engage similarly to China and Canada. They criticize U.S. tactics, highlighting misinformation and urging India to protect its agriculture sector while considering a reciprocal trade agreement. The organization warns against making concessions that could lead to further demands from the U.S.
The Global Trade Research Initiative (GTRI) has urged India to cease negotiations with the United States and adopt an engagement strategy akin to that of China and Canada. Founder Ajay Srivastava criticized the U.S. for applying excessive pressure on India to meet trade demands that primarily benefit American interests, highlighting the use of incorrect data by U.S. officials in public criticisms of India.
In response to U.S. tariffs, countries such as China and Canada have implemented retaliatory measures. Srivastava points out that claims made by President Trump regarding India agreeing to cut tariffs are “patently incorrect” and intended to exert pressure. He emphasized that India needs to counter these statements with verified facts, stating, “The whole world is watching as Trump and his officials belittle India every day.”
U.S. Commerce Secretary Howard Lutnick has insisted that India must open its agricultural market, which he regards as essential in negotiations with its largest trading partner. He advocated for a comprehensive trade agreement rather than a piecemeal approach, which would likely open avenues for U.S. demands on various issues opposed by India.
Nevertheless, Srivastava expressed skepticism about such an agreement, noting Trump’s track record of disregarding trade agreements, as seen with the US-Mexico-Canada FTA. He proposed that India should consider a reciprocal tariff model called “Zero-for-Zero,” where both nations eliminate tariffs simultaneously, while sensitive sectors, including agriculture, remain protected.
The GTRI report cautioned against any concessions in the agricultural sector, warning of potential damage to livelihoods affecting over 700 million people in India. It highlighted that the import duties on U.S. agricultural products are already low and argued that making concessions now would pave the way for further demands in the future.
Srivastava argued against the notion of India being a “tariff king,” citing that U.S. trade barriers are comparably higher on certain goods. He also noted discrepancies in U.S. trade data, asserting that the real trade deficit is significantly less than stated by U.S. officials. He concluded by urging the Indian government to stand firm against U.S. provocations and prioritize long-term economic stability over short-term concessions.
In summary, the GTRI strongly advocates for India to reconsider its approach to U.S. trade negotiations and adopt a more assertive stance similar to that of China and Canada. With concerns about potential economic harm stemming from U.S. demands, it is critical that India seeks a balanced solution, retaining protections for sensitive sectors while countering misinformation and focusing on sustainable economic resilience.
Original Source: www.business-standard.com
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