EAM Jaishankar Advocates for Fair Trade Understanding with the US
In a significant address at the India-US Strategic Partnership Forum, External Affairs Minister Dr. S. Jaishankar stressed the importance of a balanced and mutually beneficial trade relationship between India and the United States. His remarks come amid ongoing tensions over what India views as “unfair” tariffs imposed by the US on key Indian exports.
The Need for Reciprocity in Trade Policies
“Trade is a two-way street, and there has to be a fair understanding between both sides,” Jaishankar asserted. He highlighted the necessity of addressing trade imbalances and ensuring equitable policies to strengthen bilateral ties. While India values its strategic partnership with the US, the minister emphasized that economic policies must reflect fairness and reciprocity.
Rising Trade Tensions and Retaliatory Measures
The US is one of India’s largest trading partners, with bilateral trade hitting a record $128 billion in 2022. However, tensions have escalated due to US tariffs on Indian steel, aluminum, and other products, which India considers disproportionately high. In response, India has imposed retaliatory tariffs on US goods, including agricultural products like almonds and apples.
India’s Assertive Stance on Global Trade
Jaishankar’s comments underscore India’s growing assertiveness in defending its economic interests globally. “We are not against trade, but it has to be fair trade,” he said, reiterating India’s commitment to resolving disputes through dialogue and negotiation.
Broader Implications for Strategic Partnership
The External Affairs Minister also highlighted the broader impact of trade disputes on the strategic partnership between the two nations. “India and the US share a vision for a free, open, and inclusive Indo-Pacific. But economic policies perceived as unfair can undermine this shared vision,” he noted.
India’s Economic Strategy and Global Partnerships
India’s stance aligns with its broader economic strategy of promoting self-reliance through initiatives like ‘Make in India’ and boosting domestic manufacturing. However, Jaishankar acknowledged the importance of global partnerships in driving India’s growth.
“We are not looking at trade in isolation. It is part of a larger relationship that includes defense, technology, and people-to-people ties,” he said. He also praised the Indian diaspora in the US as a “living bridge” between the two nations.
US-India Collaboration and Stalled Trade Talks
During Prime Minister Narendra Modi’s state visit to the US in June 2023, both countries announced initiatives to enhance collaboration in critical technologies like semiconductors, AI, and clean energy. However, trade disputes remain a significant hurdle.
Renewed Focus on a Comprehensive Trade Agreement
Jaishankar’s remarks have reignited discussions on the need for a comprehensive trade agreement between India and the US. While negotiations for a free trade agreement (FTA) have stalled, experts believe resolving tariff issues could pave the way for a breakthrough.
“An FTA would address tariff barriers and create a framework for harmonizing standards,” said a trade analyst. “It’s time for both countries to work towards a long-term solution.”
A Call for Fairness and Trust
As India and the US navigate their trade relationship, Jaishankar’s call for a “trade understanding” highlights the need to balance economic interests with strategic goals. In an increasingly multipolar world, resolving differences between the two democracies is crucial for global stability.
The upcoming trade talks will be a critical test of this vision. As Jaishankar aptly stated, “When two great democracies work together, the world benefits. But that partnership must be built on fairness and trust.”
