For India, the problem is important. Washington accepted, after several months of tensions and overline, to sit around the table to examine the possibility of soften customs tasks. Of these customs tasks of 50%, half has been described as “punitive” by the White House, because New Delhi continues to buy Russian oil, which Americans see as indirect war support in Ukraine.
In recent weeks, the tone seems more reconcilely in Washington. The US president was more open, declaring that he wanted to meet quickly with Prime Minister Modi:
IMMISABLE KNOWING IF THIS OPENING REFLECTS A CONCERN FOR THE APPROACH BETWEEN INDIA AND CHINA OR AN ASERTIVE WILL TO STRENGTHEN A KEY ALLIANCE IN THE INDO-PACIFIAL REGION, BUT THE RESULT IS THERE: THE Americans reap the door to new negotiations.
For India, it is urgent to renegotiate customs duties, because the impact of US taxes on exports already feels. He officially entered into force on August 27, the new customs tasks weighed in advance of Indian exports of goods to the United States: they increased from $ 8.01 billion in July to 6.86 billion in August, a fall of almost 15%.
An urgent agreement with the EU
This fall contributes greatly to the general slowdown in Indian foreign trade. And the worst could be: the real effects of the new customs tariffs on American imports will feel next month. Washington is in fact the first customer in India, with almost $ 87 billion in purchases in 2024.
Given the uncertainties of the bilateral relationship with Washington, New Delhi accelerates his discussions with the European Union. Objective: conclude by the end of the year a commercial agreement presented by Brussels as a “strategic priority.”
If these negotiations, carried out for more than twenty years, have been acting now, it is also due to the commercial uncertainty caused by Donald Trump’s strategy.
But between Europeans and the Indians, several friction points remain: the protectionism of India in agricultural affairs in the first place, because India wants to guarantee food security at all costs of its population of 1.4 billion inhabitants. The European carbon tax, which should weigh a lot in many Indian products and that New Delhi considers unfair.
The main disagreement is still that in a highly symbolic file: rice. India requires that only its production can use the “Basmati” label in Europe. An affirmation that directly attacks its neighbor and rival Pakistani, currently the first Basmati Rice supplier in the European market.
For New Delhi, this exclusive recognition has become an essential condition to sign the agreement. Brussels, meanwhile, is especially trying to avoid diplomatic crisis.
Source: BFM TV
