US Journalist Warns India-US Trade Deal on “Trump’s Terms” a “Colossal Blunder”
Foreign policy analyst David Rothkopf has issued a stark warning, stating a potential India-US trade deal based on former President Donald Trump’s terms would be a “colossal blunder” harming India’s economy and strategic interests.
Key Takeaways
- Analyst David Rothkopf warns a deal on Trump’s terms would hurt India, benefit China, and damage US-India ties.
- The potential deal, reported ahead of PM Modi’s US visit, may include tariff cuts and digital trade rules.
- Negotiations have been ongoing since 2018 but face hurdles on tariffs, IP, and data.
Strong Criticism from a Foreign Policy Voice
Rothkopf, a journalist and author, made the remarks on social media platform X, reacting to a Reuters report. The report indicated the two nations are “closing in on” a trade agreement that could be announced during Prime Minister Narendra Modi’s state visit to Washington next week.
“If India agrees to a trade deal on Trump’s terms it will be a colossal blunder. It will hurt India’s economy and its strategic interests. It will be a gift to China. And it will be a major setback for the US-India relationship,” Rothkopf said.
He further described the potential deal as “a win for Trump and his protectionist agenda” but “a loss for India and the world”.
What the Potential Deal May Include
According to the Reuters report, the trade package could involve:
- Reduced tariffs on certain US exports to India, like motorcycles.
- Restoration of benefits for Indian exporters under the US Generalized System of Preferences (GSP) program.
- An agreement covering digital trade issues, including data localization and e-commerce.
The report, however, cautioned that the deal is not final and could still fall apart.
A Long Road of Negotiations
The US and India have been negotiating a trade deal since 2018, but talks have been repeatedly stalled. Key sticking points include tariffs, intellectual property rights, and data localization rules.
Discussions were revived after President Joe Biden took office in 2021, but progress has remained slow. The upcoming visit by PM Modi, scheduled from June 21 to 24, where he will meet President Biden and address Congress, is seen as a potential milestone for the long-pending agreement.
