- Amid the fast-evolving global turmoil courtesy of Donald Trump’s ill-advised and illogical tariff war afflicting every country, leaders from around the world are making earnest efforts to ensure their economies are not too saddled with the emerging challenges severely hampering envisaged growth plans. As we know, several countries made a beeline for the US on the back of Trump’s threats to impose tariffs of various hues. Likewise, a few countries reciprocated by raising tariffs on American products as well. However, what Trump’s impetuosity-ridden tariff moves have unleashed, wittingly or unwittingly, is for the countries to figure out what best suits their economic needs to ensure they continue to stay afloat in the unraveling geopolitical scenario.
PC: India Today
- Who does not wish to shield their respective countries from economic turmoil? The Indian leadership has been affected by the American tariff imposition big time. Thankfully, this situation prompted the Indian and the European Union leadership to speed up the process of the long-pending free trade agreement recently. Of course, the FTA with the EU is great news, but the process of implementation is still far away. India must also address concerns over pesticide use and industrial emissions, which the EU insists are non-negotiable, for the smooth rollout of FTA.Once the pact is implemented, both sides will benefit from lower prices, higher demand, and more jobs. Both sides should make earnest efforts to speed up the process for quick implementation.
PC: The Indian Express
- Together with another major trade deal that India signed with the UK last year, this FTA lays the ground for not only sustained export growth but also the employment of our highly skilled workers abroad. The EU is India’s biggest trade partner, with total bilateral trade of over $200bn. In both goods and services, the balance of trade favours India. So, the elimination of tariffs on 98% of Indian products will only make them more competitive. The deal is good for Indian consumers also, as the gradual reduction or elimination of tariffs on European goods, ranging from chocolates to cars, will make them more affordable. The import duty on fully built cars will be slashed to 10% eventually. But all of this is subject to the FTA’s ratification by the EU’s 27 member countries.
PC: Business Today
- Notably, India signed the Comprehensive Economic and Trade Agreement (CETA) with the UK last July, but its rollout is still pending. So, dealing with 27 govts will be trickier and require a sustained diplomatic push. Issues like India’s continued purchase of Russian oil could pose a hurdle. And time is of the essence in trade deals, as the experience with Trump has shown. Not acting on time will result in penal sanctions. Another Trump tantrum against EU could make some member countries go slow on the India deal. Contrarily, it’s also possible that the FTA speeds up America’s own deal with India. Meanwhile, the EU’s hyper-regulatory policies are an obstacle to the FTA. These issues should be ironed out sooner rather than later. The deal should get going forthwith.
