US-Indonesia Trade Pact: Lessons for India
The US-Indonesia trade agreement serves as a cautionary tale for India in its ongoing negotiations with the United States. According to the Global Trade Research Initiative (GTRI), India should be wary of making concessions that could jeopardize its long-term interests in food safety, digital policy, and industry regulations.
- Country:
- India
The recently concluded US-Indonesia trade pact has attracted significant attention as it highlights how the United States' pressure tactics can lead to substantial concessions from participating countries. Economic think tank Global Trade Research Initiative (GTRI) warns India to be cautious in its ongoing trade discussions with the US to avoid similar drawbacks.
The pact saw Indonesia remove 99% of its tariffs on US goods and commit to purchasing USD 22.7 billion in American products, alongside relaxing regulations on crucial sectors such as industry, food safety, and the digital economy. These concessions have led to losses instantly observable by experts, signaling warnings for future negotiations.
India, currently amid bilateral trade talks with the US, faces pressures to liberalize sectors like agriculture and dairy while incorporating US product and digital trade standards. GTRI's Ajay Srivastava emphasizes the need for India to secure reciprocal agreements to protect consumer interests and national economic sovereignty.
(With inputs from agencies.)
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