Trade SOP in limbo, India takes novel approach in ‘dynamic' talks with US
The Ministry had begun preparations in May last year to compile a 60-page SOP to address the lack of consistent and streamlined procedures for negotiating future trade agreements.
This was aimed at guiding the process of launching, conducting, and concluding trade negotiations, and addressed issues such as human resource mobilisation, negotiation team formation, and the composition and hierarchy of negotiating teams.
'The SOP for trade negotiations, which was supposed to be finalised by the top brass of the government, could not be completed due to internal disagreements. As far as the US deal is concerned, negotiations had to be conducted outside the scope of the SOP to tackle the dynamic nature of US trade negotiations,' a government official said on condition of anonymity.
US President Donald Trump had initially set a July 9 deadline for countries to sign a trade deal and avoid steep reciprocal tariffs, later revising the deadline to August 1. Trump also announced fresh tariffs on dozens of countries, including Canada, the EU, Brazil, and several ASEAN nations. However, he stated that a deal with India is close.
While extensive consultations with industry — ranging from textiles to automobiles — have been taking place, several farmer bodies and state ministers have begun raising concerns over the lack of consultation during the ongoing negotiations for the US deal, which could involve opening up India's agricultural market.
Kerala's Minister for Agriculture, P Prasad, said earlier this month that the livelihoods of lakhs of Kerala's rubber, coconut, dairy, and poultry farmers could be at risk if the Centre fails to protect Indian farmers' interests in the negotiations. Prasad said that Kerala had not been consulted on the deal and added that the India-ASEAN trade agreement had previously had a negative impact on the state.
The Indian Coordination Committee of Farmers Movements (ICCFM), representing farmers from 11 states, said agriculture should be excluded from the trade deal. It highlighted that the US is one of the world's largest exporters of synthetic rubber.
'The US is one of the biggest exporters of synthetic rubber. Synthetic rubber imports have seriously impacted the farm-gate price of natural rubber in India. India imported Rs 1,556.54 crore worth of synthetic rubber and related products from the US in 2017–18, and Rs 71,490.73 crore in 2018–19. If India reduces import duties on synthetic rubber from the US, it will severely affect rubber farmers,' the ICCFM said.
Farmers also warned that if India signs a trade deal with the US, the latter could import raw sugar from Brazil, process it in the US, and then export it to India—hurting the domestic sugar industry.
Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, covering policy issues related to trade, commerce, and banking. He has over five years of experience and has previously worked with Mint, CNBC-TV18, and other news outlets. ... Read More
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