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The Congress on Saturday alleged that the interim trade agreement between New Delhi and Washington would be “heavily tilted in favour of the US” and that the deal amounted to a surrender by the Prime Minister Narendra Modi-led government. Under the deal
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Trade agreement with US amounts to ‘surrender’ by Modi government, alleges Congress
The Congress on Saturday alleged that the interim trade agreement between New Delhi and Washington would be “heavily tilted in favour of the US” and that the deal amounted to a surrender by the Prime Minister Narendra Modi-led government.
Under the deal, US tariffs on Indian goods will be reduced to 18% from a combined tariff rate of 50%. The earlier rate of 50% had included a punitive levy of 25% imposed in August for buying Russian oil.
However, the head of the Congress' media and publicity department Pawan Khera contended that on account of the deal, India will become a dumping ground for American products, due to which the interests of farmers and small and medium industries will be hurt.
“This not a deal, as a deal is one that is between equals, where you sit across a table and negotiate” Khera said at a press conference. “A deal cannot be finalised with a gun to your head.... It is blackmail, it is surrender.”
Congress MP and former Union Finance Minister P Chidambaram said that the framework for the deal “is heavily tilted in favour of the US and the asymmetry is obvious”. He asked how the announcement about the framework for the deal being finalised was a matter for celebration.
“For example, while India will eliminate or reduce tariffs on all US industrial goods and a wide range of food and agricultural products, the US will impose a tariff of 18 per cent on goods originating from India,” Chidambaram said. “These goods will include textiles, leather goods, organic chemicals etc. and the US will remove the tariff only upon a 'successful conclusion of the Interim Agreement.”
Congress MP Jairam Ramesh also accused the Modi government of surrendering to the US government.
“The US will now monitor whether India is importing oil from Russia or not,” Ramesh said in a social media post. “If the US decides India has imported Russian oil directly or indirectly the extra 25% tariff penalty is back. This is truly extraordinary. And the Modi govt has accepted it!”
Ramesh also noted that the statement about the framework agreement made a reference to “additional products” that were not specified. “This is far too open-ended and shows something is being hidden,” he said.
On Wednesday, Union Commerce Minister Piyush Goyal told Parliament that interests of sensitive sectors such as agriculture and dairy will be protected under the trade deal. The tariff rate applicable on Indian goods now was lower than those on several competitor nations, Goyal told the Lok Sabha.
The commerce minister contended that the deal will help promote the Union government's initiatives such as Viksit Bharat, Make in India, Innovate in India and Design in India, and will make the country self-reliant.
Source: Scroll
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