India must be very careful when discussing trade with the United States, especially concerning farm products and genetically modified organisms (GMOs). A research group called the Global Trade Research Initiative (GTRI) has advised India to be cautious and ask for big reductions in taxes on goods India sells to the US.
GTRI suggests that India should not make any firm promises on agricultural products until the US Supreme Court makes a decision. This decision is about who has the power to set import taxes, and it could affect future trade talks. The think tank highlighted that the US often asks for lower tariffs on its farm goods, but doesn’t always offer the same for Indian products. India has a chance to get better deals on its exports, like engineering goods, chemicals, and textiles, if it negotiates well.
There’s a concern that the US might push India to accept GMO products. India has its own rules for GMOs, and it’s important to protect these. GTRI warns that agreeing to US demands on GMOs without getting significant benefits in return could be risky. They recommend that India should also think about the impact on its own farmers and food safety.
The report from GTRI also mentioned that India has a large trade deficit with the US. This means India buys more from the US than it sells. India could use this point in negotiations to ask for more favourable terms. The think tank believes that India should focus on getting US tariffs lowered for its key export items. If the US is not willing to offer substantial cuts, India should consider delaying any trade agreement.
This advice comes at a time when India and the US are looking to strengthen their trade relationship. However, it is crucial for India to protect its interests, especially in the sensitive agricultural sector. By being cautious and strategic, India can aim for a trade deal that benefits both countries fairly, while also safeguarding its domestic industries and food security. The upcoming US Supreme Court ruling on tariff authority will be a key factor to watch in these ongoing discussions.