Under the leadership of President Donald Trump, the US is looking to engage with various countries to negotiate bilateral free trade agreements (FTAs) for better market access. India seems quite excited by this change in the attitude of the US government.
Government officials said that this is a positive thing from India’s point of view. A senior government official said today, ‘This is a positive outlook as the US is looking to engage with countries with which it has better coordination for regional and bilateral free trade agreements.’
According to the memorandum on ‘America First Trade Policy’ issued soon after Trump took office, the US government will identify countries with which bilateral or sector-specific agreements can be negotiated. This will ensure better access to export markets for American workers, farmers, ranchers, service providers and other businesses. Once the countries are identified, the US Trade Representative (USTR) will make recommendations about a possible agreement.
During Trump’s first term, India had extensive discussions with the US on a small trade agreement. But despite good progress in the talks, some contentious issues could not be resolved and hence the agreement could not be signed.
Joe Biden’s government took power in 2021 and had a policy of not signing any bilateral trade agreements. But during his tenure, India and America resolved all the seven disputes pending in the World Trade Organization and many other controversial trade issues.
India’s strategy
The Commerce Department is closely studying the memorandum and the U.S. Government’s intentions on the America First Policy. Besides, discussions are also being held between various ministries to prepare a suitable strategy for the same.
An official said, ‘We are studying the memorandum on America First Policy. Some of the things mentioned in it will have a positive impact on India. In such a situation, why should we worry? We will be worried only if it has a negative impact on India. We will try to find out whether there is anything in it which will have a negative impact on India. He said that India will wait for the time being and necessary action can be taken if needed.
The official said, ‘The Commerce Department is also talking to other ministries and keeping them apprised of the situation. After assessing the situation, we will discuss together as to what can be done next.