The Congress party on Wednesday urged Prime Minister Narendra Modi to not sign the proposed trade pact with the United States as it currently stands, accusing him of appeasing President Donald Trump. The opposition party warned that the deal would hurt Indian farmers, manufacturers, and digital startups.
Congress warns against hasty trade deal
In a statement, Congress spokesperson Randeep Surjewala said that the trade pact being negotiated would force India to lower tariffs on American goods, including agricultural products like almonds and apples, and dairy items. He argued that this would flood the Indian market with subsidized US products, damaging local producers.
Surjewala also criticized the proposed removal of price controls on medical devices, which he said would make healthcare unaffordable for millions of Indians. The deal, he added, would also restrict India's ability to regulate e-commerce and data localization, harming the country's digital economy.
Modi's appeasement of Trump criticized
The Congress leader accused PM Modi of succumbing to pressure from Trump to secure a limited trade agreement ahead of the US president's visit to India later this month. “Modi ji must stop appeasing his good friend Trump and instead protect India's interests,” Surjewala said, quoting the party's stance.
He pointed out that the US has been demanding greater market access for its products while refusing to restore India's preferential trade status under the Generalized System of Preferences (GSP), which was revoked in June 2019. The removal of GSP benefits affected Indian exports worth $5.6 billion annually.
Economic and strategic implications
The trade pact, if signed, could also impact India's strategic autonomy, Surjewala warned. He said that by aligning too closely with the US, India risks alienating other key partners like Russia and Iran. The Congress party demanded that the government release the full text of the proposed agreement for public scrutiny before signing.
India and the US have been negotiating a limited trade deal for months, with both sides aiming to resolve outstanding issues such as tariff reductions and market access. However, disagreements remain, particularly over agricultural goods and intellectual property rights.
The Congress party's call comes as PM Modi prepares to host President Trump in Ahmedabad and New Delhi on February 24-25. The visit is expected to include a rally at the world's largest cricket stadium and a bilateral meeting. A trade agreement was initially hoped to be signed during the visit, but officials now say it may not be finalized in time.
Government defends negotiations
Responding to the criticism, government sources said that India is negotiating from a position of strength and will only sign a deal that is mutually beneficial. They emphasized that the government is committed to protecting the interests of Indian farmers and industries. However, they did not provide details on the specific terms being discussed.
The trade pact has been a contentious issue in India, with farmer unions and industry bodies also expressing concerns. The Congress party's intervention is likely to intensify the debate ahead of the US president's visit.
