Prime Minister Modi’s decision to attend the ASEAN summit in Kuala Lumpur virtually on Sunday, suggests that negotiations with the US on a free trade agreement are still ongoing.
Abhijit Das, former head of the Centre for WTO Studies in Delhi, told StratNews Global on The Gist programme that “It’s an open secret that in agriculture the US interests are centered around soybean, corn, some nuts and vegetables, dairy and poultry. So clearly, the US is negotiating very hard to secure its objective.
“On the other hand, we have the assurance from the Indian prime minister that the interests of farmers, fishermen and the dairy sector would not be compromised, would be protected in the final deal. So clearly, there is lots happening and very difficult to see at this juncture, whether India has given up its red lines or where the common ground is.”
He warned that during such negotiations, it is common for the US to bring in new issues which it then tries to bulldoze through. The strategy is that with a deal so near at hand, it can push the envelope a bit and wring more concessions.
“India being the other party in this case, would be hesitant to let go of the deal and would be also reluctant to have the blame put on its shoulders for collapse of the negotiations,” Das said. There is no harm in the deal taking a longer time. We must not become victims to the US.”
He underscored a major Indian weakness, it’s dependence on the US market with around 18% of its exports going there.
“If our exposure to the US market had been much lower, clearly President Trump would not have had the leverage vis-a-vis India. The US is weaponizing dependence of other countries on its markets through tariffs.”
In his view, the trade deal should not become an instrument whereby India’s reliance or dependence on the US market only grows.
Tune in for more in this conversation with Abhijit Das, former head of the Centre for WTO Studies.
Thirty eight years in journalism, widely travelled, history buff with a preference for Old Monk Rum. Current interest/focus spans China, Technology and Trade. Recent reads: Steven Colls Directorate S and Alexander Frater's Chasing the Monsoon. Netflix/Prime video junkie. Loves animal videos on Facebook. Reluctant tweeter.
