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Trump won't let other countries score big ‘wins' in trade talks. Both sides could lose.
Trump won't let other countries score big ‘wins' in trade talks. Both sides could lose.

Yahoo

time12 hours ago

  • Business
  • Yahoo

Trump won't let other countries score big ‘wins' in trade talks. Both sides could lose.

A trade agreement with India was supposed to be one of President Donald Trump's first victories from the 'reciprocal' tariff salvo he fired against dozens of trading partners in early April. But while the administration has been promising for more than two months that a deal is imminent, they're still struggling to get it over the finish line. Two people close to the negotiations, granted anonymity because of the sensitivity of the discussions, say Washington and New Delhi continue to make progress toward the first phase of a trade deal, with the expectation that a more comprehensive agreement could come later in the fall. But the White House's demands to 'open up India' as it seeks a major trade victory ahead of President Donald Trump's self-imposed July 8 deadline — as well as his attempt to link the talks to thorny geopolitics in the region — have made it that much harder for Prime Minister Narendra Modi's government to sell the deal to a domestic audience. And it underscores how Trump's all-sticks-and-no-carrot approach to trade talks is making it difficult for even friendly foreign governments to reach an agreement they fear could be political suicide back home — no matter how much the White House threatens their economies. 'Nothing riles Indians more than the idea that their government was bullied by a foreign leader,' said Syed Akbaruddin, India's former ambassador to the United Nations. 'A trade bargain that could have been a win-win deal now risks being portrayed by those who oppose it as a tribute, not a partnership.' India was one of the first countries to begin trade negotiations with the U.S., launching talks in February as Trump began to unveil his ambitious agenda to upend global trade. Negotiators have reached agreement on some agricultural issues, energy purchases and non-tariff barriers, prompting rosy White House projections that a deal is in the offing. While visiting India in late April, Vice President JD Vance announced the two sides had 'officially finalized the Terms of Reference' for the negotiations. Commerce Secretary Howard Lutnick said June 3 that, "You should expect a deal between the United States and India (in the) not-too-distant future because I think we have found a place that really works for both countries." And at an event at the White House on Friday, Trump, himself, teased that, 'I think we're going to reach a deal where we have the right to go in and trade' in India. He added, 'We're looking to get a full trade barrier dropping, which is unthinkable, and I'm not sure that that's going to happen, but as of this moment, we've agreed to that." But it has proven difficult to officially ink a deal, people close to the negotiations say, because of all the things the Trump administration is asking India to do to lower its trade barriers, while only offering to give up some of its newly-imposed tariffs, in return. For the White House, which is rapidly approaching its deadline, India would be just the second country that has agreed to a deal, not counting a tariff ceasefire with China. Any agreement would have to help justify the administration's claim that Trump's high tariff rates are truly helping to open up new markets for American products, while protecting the U.S. market. 'Productive discussions with India continue, and we look forward to announcing an historic U.S.-India trade agreement in short order,' said a White House official, granted anonymity to discuss the negotiation. The president has complicated matters by repeatedly taking credit for brokering peace between India and Pakistan this spring — even though India has long insisted it won't accept any mediation when it comes to Pakistan. Modi underscored that point in a recent call with Trump, saying that there is 'complete political consensus in India on this matter,' according to a readout of the call from India's foreign minister. The diplomatic fumble, which the president repeated multiple times this week, including at the NATO summit in the Netherlands, coupled with Trump's recent decision to host Pakistan's army chief at the White House, could make it harder for the Indian government to sell a trade deal to its people. 'Trump's comments have injected mistrust and public skepticism of U.S. support to India,' said Akbaruddin, India's former U.N. ambassador. 'The more he repeats his claim, the more a prospective U.S.-India trade agreement smells like coercion, not cooperation.' 'Whatever the current government [in India] does, it will be seen as they basically capitulated to President Trump's demand,' said Mukesh Aghi, the President and CEO of the U.S.-India Strategic Partnership Forum. 'So they are in a no-win situation.' The White House views tariffs as a cudgel to extract concessions from foreign countries — both on trade matters and a wide array of other foreign policy priorities. But it has failed to grasp, or simply doesn't care, how much trading partners' domestic politics factor into the discussions, and ultimately may trump even the existential economic threat the U.S. can wield. Talks with South Korea stalled while the country, under a caretaker government, moved to elect a new leader. Negotiations with Japan have been snagged by the Trump administration's demand that Tokyo increase defense spending and insistence on maintaining its 25 percent tariff on auto and auto parts imports, a massive blow to one of Japan's culturally defining industries. EU leaders have balked at U.S. efforts to undermine their VAT, a domestic consumption tax. India has some of the highest tariffs of any major economy in the world, with an average rate of around 17 percent. Its government, in particular, has long sought to protect the country's millions of subsistence farmers, who have outsized political clout. In 2020, after the Parliament of India passed farm legislation, farmers held a sustained protest for more than a year and eventually succeeded in getting the laws repealed. They protested again in 2024, criticizing the government for not doing more to help farmers. 'India is protective of its farmers, which is why they have relatively high tariffs compared to anywhere in the world,' said Sharon Bomer Lauritsen, a former agriculture negotiator at USTR who currently works with AgriTrade. 'They're going to protect their farmers.' The Trump administration has been here before. During his first term, negotiators worked with India in an attempt to secure a bilateral trade deal — similar to agreements the administration was able to negotiate with Japan and South Korea. The deal would have centered around three areas — increased access to India's agricultural, information technology and medical devices markets. But as talks dragged on and the scope of the deal shrank, Trump scrapped the plan. 'They got very close, really, really close to concluding a first-ever bilateral trade deal,' said Mark Linscott, a former negotiator for USTR who was involved in negotiations with India. 'This time around it's clearly a priority for both sides …. It's the agreement that got away.' Much of the challenge has been opening India's agricultural market, particularly when it comes to the genetically modified crops grown in the U.S. and dairy products. India, as a majority Hindu country, has significant religious concerns about the import of byproducts from cows. While the Biden administration was able to secure increased access for specialty agriculture products like nuts and cranberries, India is reluctant to make deals that undercut its own farmers. Any early deal with India would likely focus on products that are not readily accessible in the country, like fruits and vegetables, nuts, alfalfa and potentially ethanol. But, despite the political tension in India, the U.S. agriculture industry has continued its long-standing push to open the country's fast-growing market to U.S. products, particularly dairy. A deal on dairy is still proving elusive, even as the U.S. has shifted its strategy to lower tariffs and simplify the certificates necessary to allow more dairy products into the country. 'They've been pretty clear all along that dairy was going to be a heavy lift,' said a person close to the negotiations. Any deal announced by July 9 is likely to just be the first phase of an ongoing effort to secure a substantial bilateral trade agreement with India — a process that could stretch on for at least another year, those close to the discussions say. Linscott, who negotiated with India for USTR in the first Trump administration, said the administration knows the U.S. will likely have to make some concessions in order to secure a larger deal, putting the talks in a different bucket than other deals the U.S. is seeking to negotiate. 'India is the fourth largest economy in the world now, will soon be the third largest economy in the world, and is a critical strategic partner in the Indo-Pacific,' Linscott said. 'I think all those factor in a bit in the overall negotiating dynamics.' Phelim Kine contributed to this article.

What Our MPs Said, And Heard
What Our MPs Said, And Heard

Time of India

time11-06-2025

  • Politics
  • Time of India

What Our MPs Said, And Heard

What Our MPs Said, And Heard Syed Akbaruddin Jun 11, 2025, 20:20 IST Post-Op Sindoor global outreach by teams of parliamentarians gave a clear idea of how key countries endorse India's position on terror, and also how they carefully scrutinise actions of a rising power Over 10 days, across seven cities in four countries, I was part of a multiparty Indian delegation engaging the Global South – not only to explain Operation Sindoor , but to understand how India's actions are seen in a changing world. Our meetings in Egypt, Ethiopia, South Africa, and Qatar spanned political leadership, civil society, business leaders, think tanks, and diaspora networks. What emerged was more than goodwill. It was a revealing picture of India's image in the Global South today: not just as a reliable partner, but as a rising power. A country whose actions are carefully studied, and whose voice carries both weight and principle.

India's new policy of resolve a strong deterrent: Former diplomat Syed Akbaruddin in Egypt
India's new policy of resolve a strong deterrent: Former diplomat Syed Akbaruddin in Egypt

India Gazette

time04-06-2025

  • General
  • India Gazette

India's new policy of resolve a strong deterrent: Former diplomat Syed Akbaruddin in Egypt

Cairo [Egypt], June 4 (ANI): India's former permanent representative to the UN, Syed Akbaruddin, highlighted the success of the all-party delegation's visit to four nations, aimed at engaging with civil society across diverse countries to strengthen India's fight against terrorism. Speaking at the conclusion of the visit, Akbaruddin said, 'The multi-party delegation's goals were to reach out to the civil society in diverse countries. Having people from different parties in the delegation has had an impact because everybody is surprised that such a diverse country with so many differences, the people are united in countering has expanded the base of Indian diplomacy. As a country, we have come up with new terms of engagement in terms of trying to counter policy of restraint is now being superseded, and we have a policy of resolve, and that is an effective deterrent. This is what we have noticed where we have engaged with of narratives is a long-term process of building and seeping into the minds of people. Such visits add to the soft power of India...' He added that these diplomatic efforts form part of a broader strategy to enhance India's international engagement and counter-terrorism diplomacy. The delegation's visit underscores India's commitment to counter terrorism through dialogue and cooperation with global stakeholders. Comprising MPs from across parties, the delegation interacted with top leaders, think tanks, and opinion-makers in each country, highlighting India's unified stand against terrorism and calling for global cooperation to tackle the threat. On Tuesday, the delegation led by Supriya Sule met Egypt's Foreign Minister Badr Abdelatty in the New Administrative Capital. Abdelatty condemned the terrorist attack in Jammu and Kashmir's Pahalgam that claimed 26 civilian lives, stating such attacks cannot be tolerated. Labeling the India-Egypt relationship as 'historic,' Abdelatty said, 'It was a great pleasure to receive the Parliamentary delegation from relationship is historic. But, we need to further enhance our trade investment and economic relationship to match the excellent political relationship between the two countries and their position is very clear: we condemn, in the harshest words, the terrorist attack in Kashmir. We cannot tolerate any attacks on civilians.' The delegation, led by Supriya Sule, included Rajiv Pratap Rudy, Vikramjeet Singh Sahney, Manish Tewari, Anurag Singh Thakur, Lavu Sri Krishna Devarayalu, Anand Sharma, former Minister of Commerce & Industry, V Muraleedharan, Former Minister of State for External Affairs, and Syed Akbaruddin, Former Permanent Representative of India to the UN. The delegation aimed to brief international partners on India's response to the April 22 Pahalgam terror attack and its broader fight against cross-border terrorism while engaging with leaders in key countries. (ANI)

" We are now refusing to play cricket with another country ": Former Diplomat Akbaruddin
" We are now refusing to play cricket with another country ": Former Diplomat Akbaruddin

India Gazette

time28-05-2025

  • Politics
  • India Gazette

" We are now refusing to play cricket with another country ": Former Diplomat Akbaruddin

Johannesburg [South Africa], May 28 (ANI): Syed Akbaruddin, India's former permanent representative to the UN, has termed the Pahalgam terror attack an attempt to undermine India's social cohesion and economic momentum. He was interacting with the Indian Diaspora here on Tuesday as part of the multi-party delegation led by the NCP(SCP) MP Supriya Sule. 'Cricket is a passion for all of us. The only country before now that we refused to play was apartheid South Africa. I am raising this because we are now refusing to play cricket with another country. You need to understand the depth of our engagement and our revulsion at why we do this,' Akbaruddin said. 'Yes, this terrorist act led to a loss of a large number of lives, but it was much more. We see this as an act of undermining our social cohesion. We are a pluralistic country with diversity as our signature, yet we saw an attempt to undermine that social cohesion. More importantly, we see this as an attempt to undermine our economic momentum,' he added. He also highlighted how large the Indian economy is in comparison with that of Pakistan. 'India and Pakistan both started together as Midnight's Children. Our economy is about ten times or more than their economy. The economy of Maharashtra is perhaps larger than the economy of Pakistan,' says former diplomat Syed Akbaruddin,' he said. NCP-SCP MP Supriya Sule said at the event that the terror attack in Pahalgam has deeply hurt every Indian around the world. Sule said that Prime Minister Modi extended a hand of friendship to neighbouring countries in 2014 when he took oath as Prime Minister, but the recent attack has shown that peace efforts have not been respected. 'When PM Modi took oath in 2014, he invited every neighbour to his oath ceremony to send a message that we wanted the subcontinent to be peaceful and happy and to grow together. But, unfortunately, with the Pahalgam incident, it has not happened. This incident has shaken every Indian everywhere in the world. I am happy South Africa has stood by India,' Sule added. Sule stated that it's PM Modi's wish that Operation Sindoor must reach the global stage to show that India will not tolerate terrorism and will always stand for peace without sacrificing innocent lives. The members of the delegation are Members of Parliament Supriya Sule, Rajiv Pratap Rudy, Vikramjeet Singh Sahney, Manish Tewari, Anurag Singh Thakur, Lavu Sri Krishna devarayalu, Anand Sharma, former Minister of Commerce & Industry, V Muraleedharan, Former Minister of State for External Affairs, and Syed Akbaruddin, Former Permanent. Representative of India to the UN. On Wednesday, the delegation will visit Cape Town for meetings in the South African Parliament and with South Africa's Ministers of Government. (ANI)

Diplomatic outreach visits begin today
Diplomatic outreach visits begin today

The Hindu

time21-05-2025

  • Politics
  • The Hindu

Diplomatic outreach visits begin today

Multi-party delegations visiting international capitals over the next fortnight will tell the global community that cross-border terrorism from Pakistan continues to be a major disruptor for India. They will also present the Indian doctrine of zero tolerance of terror, according to veteran diplomat Syed Akbaruddin who is part of the diplomatic outreach effort. The first three multi-party delegations to global capitals will start their journey on Wednesday (May 21, 2025) and Thursday (May 22, 2025), the Ministry of External Affairs said on Tuesday (May 20, 2025). 'In various countries of the world, the salience of terrorism over the past two decades has gone down as they are prioritising other issues. For example, for some countries, T stands for tariff but for us in India, T also stands for terrorism because over several decades now, cross-border terrorism from Pakistan has been a challenge to our social harmony and developmental goals,' said Mr. Akbaruddin, who will visit Egypt, Qatar, Ethiopia, and South Africa between May 24 and June 1, along with eight MPs in a delegation led by Supriya Sule of the NCP (SCP). The first three teams that will leave on Wednesday (May 21, 2025) and Thursday (May 22, 2025) were briefed by Foreign Secretary Vikram Misri on Tuesday (May 20, 2025). These three teams will also visit Japan, Republic of Korea, Singapore, Indonesia, Malaysia, the United Arab Emirates, the Democratic Republic of Congo, Sierra Leone, Liberia, Russia, Slovenia, Greece, Latvia, and Spain. The other four teams will start their journey on May 23 to 25. BJP MP Aparajita Sarangi said that apart from the members of the UN Security Council, five other countries have been selected that will become members of the UNSC in the coming days. 'So, representatives are going to over 25 nations…This is our message that India stands united against terrorism,' said Ms. Sarangi. 'We will be interacting with a cross-section of people there like the principal state actors, ministers, members of Parliament, academicians. These would be general meetings set on the general background of Indo-Pak issues and the terror being exported to India from Pakistan,' said CPI(M) MP John Brittas, who will be part of the delegation being led by Sanjay Kumar Jha of the Janata Dal (United). This delegation will start its tour in Japan on Thursday (May 22, 2025) and then proceed to visit the Republic of Korea, Singapore, Indonesia, ending with Malaysia on May 31. The government had constituted seven groups consisting of 43 MPs from various political parties to project a united national front before the world community while briefing them about Operation Sindoor that targeted nine terror hubs in Pakistan in response to the April 22 Pahalgam terror attack. The Hindu's Editorials The Hindu's Daily Quiz From which country did India stop readymade garment exports? Bangladesh Pakistan China U.S. To know the answer and to play the full quiz, click here.

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