As Trade Deals Create Confusion, India Should Seek Joint Statement: Experts
As per recent reports, Chinese authorities are dragging out approval of Western companies’ requests for the critical components.
Chennai: The United States’ trade deals with the UK and Vietnam and the framework agreement with China has created more confusion than clarity. Experts want India to insist on a written joint statement while announcing the deal with the US.
The US-UK deal announced in June initially mentioned that the 25 per cent sectoral tariff on steel and aluminium for all countries will not be subjected to UK exports. While these sectoral tariffs have now been increased to 50 per cent, reports suggest that talks are still on and negotiations were further needed to reduce steel tariffs. Hence, the confusion regarding steel imports for the UK at zero percent, 25 per cent or 50 per cent continues.
Similarly, US President Donald Trump had announced that the US and China have reached a framework agreement and that China had agreed to supply US companies with magnets and rare earth metals, while the US would walk back its threats to revoke visas of Chinese students.
As per recent reports, Chinese authorities are dragging out approval of Western companies’ requests for the critical components.
On July 2, President Trump took to Truth Social to declare that a deal had been reached with Vietnam. He claimed that Vietnamese exports to the US would face a 20 per cent tariff while US goods would enter Vietnam duty-free.
But Vietnamese negotiators point out that they agreed to 11 per cent and not 20 per cent rate. Vietnam has not formally accepted this key provision, and the dispute remains unresolved, said GTRI.
“This episode is a cautionary tale on why every country must demand clear, written and jointly agreed texts before endorsing any deal with the US. India must not leave a final announcement with Trump and insist upon a joint statement,” said Ajay Srivastava, founder GTRI.
