South Asian Insider
Solving the India-US trade dispute must be the top priority
In trade disputes, harsh retaliation and rhetoric are often precursors to amnesty and agreement. The hope is that India's imposition of tariffs last week on a number of imports from the United States is exactly that: the storm before the lull. Washington had taken away India's privileges under the generalised system of preferences, a market access privilege granted to developing countries. New Delhi's retaliatory tariffs were a response to an even earlier US sanction, a set of unilateral tariffs against steel and aluminium imports. Settling the trade dispute with the US needs to be at the top of policy priorities for the new Narendra Modi government. India's foreign policy trajectory will remain murky if this is allowed to snowball. As important, a festering dispute will add to the uncertainties that foreign investors are already having about India's faltering economy. The first thing to realise is that neither India nor the US are interested in letting the dispute spin out of control. The tariffs both sides have imposed are small fry, and are not at all comparable to the gargantuan tariffs the US and China are imposing on each other. But it is also important to recognise that the Trump administration will not budge on trade with any country, no matter how close its strategic relationship. Second, the real problem is not tariffs but a breakdown in trust between the two sides in which both sides are to blame. Third, there are nonetheless genuine trade differences between the two countries. The real tough issues are not about tariffs and prices; they are regarding the future of the digital economy, at home and abroad. The US has already begun constructing a trade order in which there will be no barriers to cross-border data flow. India is of the view that the development of its own digital champions requires a certain degree of protection. The latter view has already resulted in a questionable set of draft e-commerce policies. It is hard to see how these starkly different views of a global digital order, some of which has geopolitical repercussions, can be reconciled in just a few weeks. This may require a sustained dialogue between the two sides that has to go beyond the quick fixes that it is hoped will be reached in the next few months.
Why a weaker Congress is bad news for Opposition unity
(News Agencies) Now that the exit poll predictions are out for the Maharashtra and Haryana assembly elections, it looks like the C...
Trudeau faces rough road as Canada's minority parties lay out their conditions
(News Agencies) After eking out a win in the first major test of his popularity since sweeping to power in 2015, Justin Trudeau wa...
No miraculous resurgence for NDP, but Singh wins influence
Only eight months ago Jagmeet Singh’s leadership was on such shaky ground that some New Democrats weren’t exactly hoping that he’d...
ISRO inks MoUs with DRDO sign for Gaganyaan project
(News Agencies) The Indian Space Research Organisation (ISRO) on Tuesday inked MoUs with the Defence Research and Development Org...
Govt trying to remove nationalist leaders: Rahul on Farooq Abdullah detention
(News Agencies) Rahul Gandhi added that the move will polarise the rest of India. In a sharp attack on the Centre’s Kashmir move,...
2019 shows why achieving 1.5 degree C, not 2 C, is must to fight climate change
The United Nations climate action summit in New York on September 23 provides a unique opportunity to global leaders to enhance th...
Don't take CBD products into the UAE, UK government warns travelers
(News Agencies) Your body lotion or e-cigarette could get you into serious trouble in the United Arab Emirates (UAE). This was the...
Namaste... and sorry: Tulsi Gabbards message to PM Modi ahead of Houston event
(News Agencies) US congresswoman Tulsi Gabbard released a video message Thursday welcoming Prime Minister Narendra Modi to the Uni...
Indian-Americans Urge US Congressman Ro Khanna To Leave Pakistan Caucus
(News Agencies) WASHINGTON: A record number of 230 Indian-American organisations in the United States have urged Democratic Congre...
Welcome to USA
(SAI Bureau) New York: Indian Prime Minister Narendra Modi is scheduled to travel to the United States this weekend for his first ...
© All rights Reserved. The south Asian, Published Weekly from New york.