Trade Talks With US: Economic Think Tank GTRI Wants India To Be Cautious
GTRI warned that the absence of Fast Track Trade Authority makes any pact vulnerable to changes by the US Congress.
The Global Trade Research Initiative said on Tuesday that India needs to be vigilant while negotiating the proposed bilateral trade agreement with the United States.
India and the US are set to launch formal talks on a proposed trade agreement from Wednesday. The development is of great significance as US President Donald Trump is planning to impose reciprocal tariffs on April 2.
"As negotiations continue, the path forward demands not only diplomatic skill but also vigilance against legal asymmetries embedded in America's trade playbook," GTRI Founder Ajay Srivastava said.
According to the Indian economic think tank, the absence of Fast Track Trade Authority in the US makes any pact vulnerable to Congressional changes.
The US Fast Track Trade Authority—also known as the Trade Promotion Authority—is a special mechanism that allows the American President to negotiate trade agreements and present them to Congress for an up or down vote, without amendments or procedural delays.
Since 2021, this authority has lapsed and has not been renewed. Srivastava said that without this authority, any trade deal negotiated by the US president is exposed to Congressional scrutiny, possible amendments, delays, or outright rejection.
"The absence of the authority exposes any finalised agreement to unpredictable legislative intervention in Washington," Srivastava said.
Srivastava pointed out that without this authority in place and with the precedent of post-agreement certification allowing the US to impose additional demands, the risk of asymmetric obligations is real.
The United States' post-trade certification process involves America independently determining whether a partner country has fulfilled its obligations under the agreement.
The trade agreement does not enter into force until the US issues this certification, which historically has been used to pressure countries into making additional legal and policy changes not specified in the original FTA text, Srivastava said.
The certification process allows the US to effectively renegotiate the trade agreement after it is signed, demanding domestic legal changes, regulatory reforms, and policy shifts that could undermine India's sovereignty, he added.
—With PTI inputs
