India-US Trade Talks: A Call for Caution

Trade experts are urging India to proceed with caution in its trade negotiations with the United States, warning that a hasty agreement could compromise sensitive sectors such as agriculture. This advice comes amidst aggressive trade tactics by the US, including proposed tariffs on major trading partners.

The Global Trade Research Initiative (GTRI) highlights that India is not alone in facing pressure from the US, with over 20 countries currently in talks and more than 90 being pushed for trade concessions. "Most are resisting these politically driven, transactional demands," says GTRI Founder Ajay Srivastava.

The Risks of a Hasty Deal

Srivastava warns that a rushed agreement could have irreversible consequences, especially given the unpredictable nature of US politics. Other experts echo this sentiment, noting the diminishing credibility of US trade threats under the current administration.

Countries from Japan and South Korea to the EU and Australia are resisting US demands for tariff cuts without reciprocal concessions, assured purchases of American goods, and the potential for future tariffs even after agreements are finalized.

Next Steps in India-US Trade Negotiations

A team of Indian trade negotiators is set to visit Washington to continue discussions on the proposed Bilateral Trade Agreement (BTA), amid calls for a careful and considered approach to safeguard India's core sectors.