U.S.-India interim trade deal is humiliating to India

The U.S. and India officially announced on February 6 the bilateral interim trade agreement they had reached. For Modi’s government, two aspects of the agreement give the impression of being “a humiliating treaty.”

Modi offers a hug to Trump.

First, a presidential executive order issued by the White House said India has committed to cease direct or indirect imports of oil from the Russian Federation and has expressed its intention to purchase energy products from the United States. Moreover, it pledged to finalize a framework agreement with the U.S. to expand defense cooperation over the next decade.

It was only after this that the U.S. agreed to withdraw the additional 25% punitive tariffs. The order added if the U.S. Secretary of Commerce determines that India has resumed direct or indirect imports of oil from Russia, the Secretary of State shall propose further actions against India, including reinstating the 25% additional ad valorem tariffs on imports from India. In other words, if India does not halt its purchases of Russian oil, it may once again face punitive tariffs.

Second, India is required to complete purchases of over $500 billion worth of U.S. energy, technology, agricultural products, coal, and numerous other goods, including $70 to $80 billion worth of Boeing aircrafts, within five years. At the same time, India has to open its agricultural market to the U.S., reducing tariffs and other trade barriers to zero.

Source: Mekong News Network, YICC