90-day pause window: High-stakes trade race, India banks on market muscle for early US deal | Current Affairs | Vision IAS

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90-day pause window: High-stakes trade race, India banks on market muscle for early US deal

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India-US Trade Negotiations

As over 75 countries aim to sign trade deals with the US during a 90-day pause to avoid reciprocal tariffs, India is focusing on replacing third-country imports to the US. This strategy is intended to bridge the trade gap between India and the US.

Trade Agreement Discussions

  • A senior government official stated that virtual discussions would commence, with clarity on duty concessions expected by the end of May.
  • An interim trade deal might be signed if substantial progress is made during the 90-day window.
  • India is confident in addressing the US trade deficit and absorbing more imports, potentially strengthening its position compared to other countries like Vietnam.

India's Strategic Position

  • India aims to increase its exports to the US, potentially elevating the overall trade to $500 billion.
  • The Commerce Minister, Piyush Goyal, emphasized national interest over deadlines in negotiations.
  • Both the US Treasury Secretary and US Trade Representative have indicated positive progress in talks with India.

WTO Compliance and Challenges

  • The trade agreement will adhere to World Trade Organisation (WTO) rules, countering claims of the US abandoning the current world trade order.
  • Section 301, invoked by the US, is under the "security exception" clause of WTO, allowing unilateral actions against perceived unfair trade practices.

Global Trade Dynamics

  • China has accused the US of "unilateralism and economic hegemony," citing Section 301 tariffs as damaging to global trade order.
  • The WTO panel ruled in favor of China against US tariffs, but the US's appeal has stalled due to a paralysed WTO Appellate Body.

Ravi Dutta Mishra is a Principal Correspondent with expertise in trade policy, contributing to The Indian Express and other notable outlets. ```

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  • India-US Trade
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