India is advised to focus exclusively on industrial goods tariffs in upcoming talks with U.S. Trade Representative Brendan Lynch. The GTRI recommends eliminating tariffs on 90 percent of industrial lines contingent upon U.S. reciprocity but cautions against broader topics like intellectual property and agriculture. The absence of FTAA in the U.S. adds uncertainty to the negotiation process.

The Global Trade Research Institute (GTRI) has advised that India should concentrate its negotiations with Assistant U.S. Trade Representative Brendan Lynch on industrial goods tariffs during the forthcoming talks this week. Lynch and a team of U.S. officials are visiting India for five days, starting March 25, to engage in ongoing bilateral trade discussions aimed at formalizing a bilateral trade agreement (BTA) with a target to complete it by fall 2025.
GTRI has proposed that India eliminate tariffs on 90 percent of industrial tariff lines, provided the U.S. reciprocates. This approach could encompass over 90 percent of the bilateral merchandise trade between India and the U.S. Additionally, GTRI recommended that India refrain from discussing areas such as intellectual property, digital trade, agricultural tariffs, and government procurement to avoid complicating negotiations. Concerns about national security and the effects on Indian businesses were emphasized, particularly with respect to easing regulations for major U.S. companies including Tesla and Amazon.
To address U.S. President Donald Trump’s concerns, India previously reduced customs duties on certain items, including bourbon whiskey, prior to meetings with the U.S. administration. GTRI highlighted that India’s efforts to lower tariffs on products have not been positively recognized by the U.S. government. The institute also cautioned India regarding the BTA, noting that the absence of Fast Track Trade Authority (FTAA) in the U.S. Congress makes any agreement susceptible to changes that could arise from legislative actions.
FTAA is a presidential authority intended to expedite trade negotiations. Without it, there is a heightened risk of Congressional modifications after a trade deal is finalized. The report from GTRI underscores that the existing one-sided certification process in the U.S. may create further pressure on partner countries post-agreement, resulting in uncertain obligations. The absence of FTAA could lead to unpredictable legislative actions in Washington, introducing risk into the negotiations while requiring India to maintain diplomatic acuity and vigilance against potential legal imbalances.

In summary, the GTRI has advised India to prioritize discussions on industrial goods tariffs in its upcoming trade negotiations with the U.S. and to avoid engaging in broader topics that could jeopardize the agreement. The lack of Fast Track Trade Authority in the U.S. heightens the risk of legislative alterations to any finalized deal. Thus, India must navigate these discussions with caution and strategic foresight to secure a beneficial agreement while safeguarding national interests.

Original Source: www.business-standard.com

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