TradeDeal – Congress Questions India’s Position as US Trade Talks Advance
TradeDeal – As discussions over a proposed India-US trade arrangement gain momentum, the Congress party on Tuesday urged Prime Minister Narendra Modi to avoid making concessions under pressure from the United States and called for a cautious approach in ongoing negotiations with Washington.
The remarks came as US Trade Representative Jamieson Greer arrived in New Delhi for meetings aimed at advancing talks on an interim trade framework that was discussed earlier this year between Prime Minister Narendra Modi and US President Donald Trump.
Congress Raises Concerns Over Proposed Agreement
Congress leader Jairam Ramesh argued that India should not rush into signing any agreement that may not adequately protect its economic interests. According to him, the current framework under discussion appears to place greater obligations on India while offering limited certainty in return.
Ramesh said the government should carefully evaluate the long-term implications of any trade commitment, especially for sectors that could face increased competition from imported goods.
Reference to Earlier India-US Understanding
Highlighting developments from earlier this year, Ramesh referred to a joint trade statement issued on February 6 following discussions between the two countries. He said the understanding included proposals related to tariff reductions on Indian exports and greater market access for American agricultural and industrial products.
According to the Congress leader, India was also expected to significantly increase purchases from the United States over the coming years as part of the broader economic engagement plan.
US Court Verdict Adds Uncertainty
Ramesh further pointed to a ruling by the US Supreme Court on February 20, which declared President Donald Trump’s reciprocal tariff policy unlawful. He argued that the judgment altered the circumstances surrounding the trade discussions and created uncertainty regarding previously discussed tariff benefits.
He noted that shortly after the ruling, the United States introduced a temporary 10 percent tariff applicable to trading partners, including India. The legal validity of that measure is expected to face further scrutiny in the coming months, leaving questions about future tariff arrangements.
Investigation Into Trade Practices
The Congress leader also referred to an ongoing US investigation involving India and several other countries over alleged unfair trade practices. He said the outcome of the review could influence future trade negotiations and may place additional pressure on countries seeking market access to the American economy.
According to Ramesh, India should not feel compelled to conclude an agreement before the findings of the investigation become clear.
Impact on Agriculture and Domestic Industries
Expressing concern over the potential consequences of the proposed deal, Ramesh said farmers in several states, including Jammu and Kashmir, Himachal Pradesh, Bihar, Madhya Pradesh, Rajasthan and Maharashtra, could face challenges if domestic markets are opened further to American agricultural products.
He argued that while India may be expected to make substantial commitments, the United States has not provided equivalent guarantees regarding future tariff policies or trade protections.
Questions Over Long-Term Reliability
The Congress leader also cited examples of countries that maintain trade arrangements with the United States but have nevertheless faced tariff-related disputes. He questioned whether any future agreement could fully shield India from unilateral policy decisions taken by Washington.
Ramesh maintained that trade negotiations should be guided by national economic priorities and not by political considerations.
Trade Talks Continue
Meanwhile, Greer’s visit is expected to focus on advancing discussions related to the interim trade understanding reached earlier between the two governments. The visit follows recent interactions between Prime Minister Modi and President Trump during the G-7 Summit in France, where both sides expressed optimism about the progress of negotiations.
President Trump had indicated that India and the United States were moving closer to finalising a trade agreement, suggesting that discussions between the two countries remain active despite ongoing policy and legal uncertainties.