India Must Guard Against Legal Asymmetries In US Trade Negotiations: GTRI

New Delhi, Mar 25 (KNN) India must exercise strategic prudence while negotiating its proposed bilateral trade agreement with the United States, according to a critical analysis by the Global Trade Research Initiative (GTRI) released on Tuesday.

The economic think tank highlighted significant complexities surrounding the potential agreement, primarily stemming from the absence of Fast Track Trade Authority in the United States.

The absence of Fast Track Trade Authority, which traditionally allows the American President to negotiate trade agreements subject to a straightforward congressional vote, introduces unprecedented uncertainty into the negotiation process.

This mechanism, which has historically facilitated swift finalisation of major trade agreements like the North American Free Trade Agreement, has been inactive since 2021.

GTRI Founder Ajay Srivastava emphasised the potential risks inherent in the current diplomatic landscape. Of particular concern is the United States' post-agreement certification mechanism, which allows unilateral determination of a partner country's compliance with treaty obligations.

This process could potentially expose India to additional demands for legal and regulatory reforms not initially contemplated in the original agreement.

"The path forward demands not only diplomatic skill but also vigilance against legal asymmetries embedded in America's trade playbook," Srivastava cautioned.

The certification process effectively permits the United States to re-negotiate aspects of the agreement after its initial signing, potentially undermining India's sovereign interests.

The stakes are particularly high as Indian and American officials are set to commence formal trade talks this week.

Without the Fast Track Authority, any negotiated agreement remains vulnerable to congressional scrutiny, potential amendments, and even outright rejection.

This uncertainty creates a complex diplomatic and economic environment that requires careful navigation.

As negotiations proceed, India must remain strategically aware of the potential legal and procedural challenges that could emerge during the trade agreement's development and ratification.

The coming discussions will test the diplomatic and economic expertise of both nations in crafting a mutually beneficial framework.

(KNN Bureau)