GTRI Warns Against Comprehensive US-India FTA

The Global Trade Research Initiative advises India to reconsider a comprehensive free trade agreement with the US, citing risks to agriculture, automobiles, and pharmaceuticals. GTRI suggests pursuing a limited tariff deal on industrial goods, prioritizing trade with Europe and China, and implementing domestic reforms for economic resilience.

The Global Trade Research Initiative (GTRI) has advised India to rethink negotiating a comprehensive free trade agreement (FTA) with the United States. According to GTRI, such an agreement could pose significant challenges to domestic sectors like agriculture, automobiles, and pharmaceuticals.

GTRI warned that a trade deal with Washington could result in weakening India's minimum price support system for farmers, acceptance of genetically modified food imports, reduction in agricultural tariffs, changes to patent laws extending drug monopolies, and allowing American e-commerce giants direct access to Indian consumers. These factors could endanger farmer incomes, food security, biodiversity, public health, and small retailers' survival.

The organization suggests India avoid comprehensive FTAs that might necessitate damaging concessions. Instead, GTRI Founder Ajay Srivastava recommends a focused approach, like a 90 per cent industrial goods zero-to-zero tariff deal, similar to one proposed by Europe. Srivastava also advocates for strengthening ties with countries like China to build product value chains, which could add local value to goods meant for domestic use and export.

(With inputs from agencies.)