India-US Trade Deal: A Pre-committed Purchase Controversy

Congress MP Shashi Tharoor critiques the India-US interim trade deal, describing it as a 'pre-committed purchase agreement' that undermines reciprocity principles. He points out the deal's lack of proportional benefits for India, arguing it converts a trade surplus into a deficit without securing reciprocal market access.

In a critical review of India's interim trade deal with the United States, Congress MP Shashi Tharoor has labeled the agreement as more of a 'pre-committed purchase agreement' rather than a reciprocal trade arrangement. He accused Union ministers S Jaishankar and Piyush Goyal of evading accountability when questioned about the deal.

Tharoor argued that while India may have secured minor tariff reductions, it fails to match the strategic economic leverage enjoyed by other Asian countries like China and Vietnam, which maintain significant trade surpluses with the US. The Congress MP from Thiruvananthapuram further denounced the government's $500 billion purchase commitment as a move that risks turning India's trade surplus into a long-term deficit.

He expressed concerns over the absence of a detailed explanation regarding the impact on farmers and the MSME sector, questioning why India seemingly forfeited its negotiating power without tangible market access concessions from the US. With the final agreement expected in mid-March, Tharoor emphasized the necessity for greater transparency in trade negotiations affecting national interests.

(With inputs from agencies.)