Trade deal between India and America
The trade deal between India and America, which has been awaited for a long time, has now reached a point where both hope and confusion are going on simultaneously. Despite the strengthening relations between the two countries, the question in everyone’s mind is why the papers are not being stamped? Media reports show that officials from Washington and New Delhi are continuously working hard to remove the final hurdles of this agreement, but there are still some screws which have not been loosened.
Talks are going on, where is the problem?
According to media reports, talks between the two countries have intensified in the last few weeks. The good news is that consensus has been reached on many important issues, but the matter gets stuck on ‘sensitive tariffs’ and ‘sequencing’ i.e. the order of implementing the conditions. This is the hindrance that has slowed down the entire process.
Both sides want that the agreement should be such that it is not just on paper, but should bring long and lasting stability in bilateral trade. At present, only a few unresolved issues remain, over which the technical teams of both the countries are brainstorming. The effort is to somehow resolve these differences and prepare a draft.
Fear of legal complications in America
Not only mutual disagreements but also America’s domestic legal complications are a major reason behind this delay. Actually, a case is going on in the Supreme Court in America regarding the right to impose tariffs. Although the possible decision of the court is not directly stopping the ongoing talks, it is definitely an alarm bell for the future.
Experts believe that if the US Supreme Court’s decision weakens the existing legal basis of tariffs, then Washington will be forced to resort to old and strict laws. These old laws have very strict restrictions regarding tariff levels and time limits. This will not only make trade rules stricter, but may also worsen the political environment, making it difficult to implement any deal.
When will it be approved?
Now the question is when will this deal be final? Under the current process, once the technical teams reach a conclusion, it will be sent to the US Trade Representative and India’s Commerce Ministry for approval. Only after getting the green signal from there, it will reach the table of Prime Minister Narendra Modi and US President Donald Trump for final signature.
This deal will be no less than a lifesaver for the common Indian businessmen and exporters. It is expected that if the agreement is reached, 50 percent tariff imposed by America on Indian exports can be removed. This step will bring great relief to the Indian textile and other sectors, which are currently burdened with heavy taxes.