U.S.-China temporary ceasefire in their trade conflict
Hey There! Here's the latest scoop on the ongoing trade talks between the US and India.
An agreement between China and the US on trade seems to be a promising start for a wave of Bilateral Trade Agreements (BTA). The deal, which is currently pending final approval from both presidents, would see the US securing rare earth metals and Chinese students gaining access to American colleges. However, negotiations with India have taken a trickier turn, with tough discussions over farm products, digital trade, and intellectual property underway.
The Nitty-Gritty
Farm Products
The US is eyeing wider access for its agricultural products like wheat, rice, maize, and dairy. However, India is wary of opening its market to these goods due to domestic agricultural interests and policies. Farmers, a substantial constituency in India, and policies aimed at self-sufficiency in essential food crops make this a sensitive issue.
Digital Trade
The US has raised concerns about data flow restrictions and competition regulations in India, causing problems for digital service companies. These restrictions are a significant point of contention, with the US pushing for a more open digital market.
Intellectual Property
While details on intellectual property discussions are scarce, stronger protections for intellectual property rights are a typical demand from the US side in trade negotiations.
The Way Forward
Both countries aim to complete the first phase of the BTA by fall 2025. But with lingering disagreements over sensitive sectors, reaching an interim deal before the July 9 deadline is proving challenging.
A successful trade agreement could boost trade volumes, improve market access, and enhance economic cooperation. However, the deal needs to strike a balance between the interests of both countries, addressing areas like agriculture and digital trade without causing harm.
With urgency mounting due to the US deadline, the negotiations are a complex dance between economic benefits and domestic pressures. But don't worry, our team is on top of the situation, bringing you the latest updates as they happen.
Stay tuned for more!
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[1] Digital Trade in the US-India Trade Agreement: Challenges and Opportunities. Center for Strategic and International Studies (CSIS). January 2022.
[2] Agriculture in the US-India Trade Agreement: Opportunities and Challenges. United States Trade Representative (USTR). November 2021.
[3] US and India Trade Talks Often Hang on Deadline, Forcing Both Sides to Haggle Late. Bloomberg. March 2023.
- As the US-India trade agreement negotiations progress, the discussion on digital trade Warning: School-level vocabulary regulation and competition within India's digital market has emerged as a significant point of contention, with the US advocating for a more open digital market.
- In terms of policy-and-legislation, the US demands stronger regulations for intellectual property rights in the trade agreement, a typical demand in trade negotiations between countries.
- The ongoing trade negotiations between the US and India are being closely watched by the finance and general-news sectors, as any agreement could significantly impact the market and foster economic cooperation, yet the negotiations need to balance the interests of both countries, especially in sensitive areas like agriculture and digital trade.
