US fee: clear strategy required – American Fee Clear Strategy is required –

India may be forced to give difficult concessions while finalizing the trade agreement with the US. Therefore, to deal with the US’s proposed mutual fee, it should propose a ‘zero’ tariff strategy. It can mark such products where there is scope to abolish the duty on US imports. This was stated by the Delhi -based Research Institute Global Trade Research Initiative (GTRI) in its report on Friday.

Indian policy makers should also prepare a list of products domestically, avoiding damage and most agricultural products should be kept out of this agreement. In its report, GTRI also said that the list should be discussed before April before the announcement of the implementation of mutual fees with the US. It also suggested that this strategy should be similar to the free trade agreement and if the US accepts it, the mutual fee for India can be very low or zero.

According to the report, the ‘zero for zero’ fee strategy violates the rules of the World Trade Organization (WTO), but it is less harmful than interacting on a full FTA, which is bound to give some difficult concessions for India There may be issues such as opening the way of government procurement for American firms, reducing agricultural subsidies, softening patent rules and removing data flow obstructions. The report says that it will not be easy for India to move forward in all these matters.

While preparing such a list, India can propose the FTA fee paid to Japan, South Korea and ASEAN countries.

If the US rejects the ‘zero for zero’, it would mean that tariff is not the main issue for the US government but it wants to pressurize India for concessions in other areas. In such a situation, India should refuse to compromise and take a lesson from China and reject irrational demands.

Effect of equal fees

Since the nature of the same fee of US President Donald Trump is not yet clear. It is not known whether it will be product based or region wise or at the country level. Given this, the report said, ‘If it is applicable at the level of the product, its effect will be limited, because India and America do not trade the same products. But if it is installed on the basis of different areas, then the entire industry may have to face serious upheaval.

First Published – February 21, 2025 | 10:52 pm IST