India called on to desist from repeating Indonesia’s mistakes in trade deal with US

 

The US-Indonesia trade pact reflects how Washington’s pressure tactics can compel countries to cut tariffs, commit to large purchases and loosen regulatory control, and India should tread cautiously in the ongoing trade talks to avoid similar concessions, said economic think tank the Global Trade Research Initiative (GTRI). Indonesia gave up far more than it gained, removing 99% of its tariffs on US goods, agreeing to buy USD 22.7 billion in American products, and weakening important rules that protected its industries, food safety and digital space, GTRI said. India now faces similar US demands, including allowing remanufactured goods, opening up the agriculture and dairy sectors, accepting genetically modified (GM) feed, and adopting US rules on digital trade and product standards. Concessions, especially on critical areas like food, health, digital and IP, must be fair, reciprocal and aligned with India’s development needs, said a report.

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