<p>The agreement announced by United States President Donald Trump regarding the tariff arrangement between the US and India is short of a trade deal, and sheds light only on one part of the trade issues between the two countries. But it is a substantive arrangement, and has brought relief to traders, the stock market, and all others who were concerned about the disruption of India’s trade ties with the US. </p><p>It offers hope that the general setback in bilateral relations will be overcome. Prime Minister Narendra Modi reciprocated Trump’s announcement with approval. The commerce departments of both governments have endorsed the announcement, and provided some explanations. </p><p>Trump’s announcement said that the US would slash tariffs on goods from India to 18 per cent from the existing 50 per cent. He also said that India would reduce tariffs on imports from the US to 0 per cent. </p>.World confident of stability after India's trade deals with EU, US: PM Modi in Rajya Sabha.<p>While the general response in India is positive, the announcement has raised some questions. The talk about a 0 per cent duty regime for imports from the US has caused serious concern in India. That would mean flooding the Indian market with US goods — including dairy and agricultural products — and this would harm India’s farm sector, which is very vulnerable and sensitive. </p><p>US Agriculture Secretary Brooke Rollins has said that the deal would improve access for US farm products to “India’s massive market.” Commerce Minister Piyush Goyal has said that India’s farm sector would be fully protected. Modi has also made similar assurances in the past. But the statements from the US have caused concern, and organisations such as the Indian Coordination Committee of Farmers Movements (ICCFM) have reminded the government of the consequences of India giving duty-free access to US farm products.</p>.<p>Other issues need to be explained or resolved. Trump said that India had “agreed to stop buying Russian oil.” India has not yet commented on it, but the Kremlin has said that it has not received any indication from India of halting the purchase of Russian oil. Such a stoppage would only hurt India’s interests and its relations with a reliable and long-standing friend, and would amount to yielding to pressure from an unreliable country led by a whimsical leader. </p><p>The White House press secretary said that India had “committed to $500 billion of investments into the United States, including for transportation, for energy and for agricultural products as well.” There is no explanation for this claim from India. While Trump said the tariffs would be cut “immediately”, Goyal said that the details would be shared “soon”. The details should be put in the public domain, and the questions that have arisen should be answered, and the concerns addressed at the earliest.</p>
<p>The agreement announced by United States President Donald Trump regarding the tariff arrangement between the US and India is short of a trade deal, and sheds light only on one part of the trade issues between the two countries. But it is a substantive arrangement, and has brought relief to traders, the stock market, and all others who were concerned about the disruption of India’s trade ties with the US. </p><p>It offers hope that the general setback in bilateral relations will be overcome. Prime Minister Narendra Modi reciprocated Trump’s announcement with approval. The commerce departments of both governments have endorsed the announcement, and provided some explanations. </p><p>Trump’s announcement said that the US would slash tariffs on goods from India to 18 per cent from the existing 50 per cent. He also said that India would reduce tariffs on imports from the US to 0 per cent. </p>.World confident of stability after India's trade deals with EU, US: PM Modi in Rajya Sabha.<p>While the general response in India is positive, the announcement has raised some questions. The talk about a 0 per cent duty regime for imports from the US has caused serious concern in India. That would mean flooding the Indian market with US goods — including dairy and agricultural products — and this would harm India’s farm sector, which is very vulnerable and sensitive. </p><p>US Agriculture Secretary Brooke Rollins has said that the deal would improve access for US farm products to “India’s massive market.” Commerce Minister Piyush Goyal has said that India’s farm sector would be fully protected. Modi has also made similar assurances in the past. But the statements from the US have caused concern, and organisations such as the Indian Coordination Committee of Farmers Movements (ICCFM) have reminded the government of the consequences of India giving duty-free access to US farm products.</p>.<p>Other issues need to be explained or resolved. Trump said that India had “agreed to stop buying Russian oil.” India has not yet commented on it, but the Kremlin has said that it has not received any indication from India of halting the purchase of Russian oil. Such a stoppage would only hurt India’s interests and its relations with a reliable and long-standing friend, and would amount to yielding to pressure from an unreliable country led by a whimsical leader. </p><p>The White House press secretary said that India had “committed to $500 billion of investments into the United States, including for transportation, for energy and for agricultural products as well.” There is no explanation for this claim from India. While Trump said the tariffs would be cut “immediately”, Goyal said that the details would be shared “soon”. The details should be put in the public domain, and the questions that have arisen should be answered, and the concerns addressed at the earliest.</p>
