Why India-UK trade agreement does not simplify the US-India agreement

Hello, this is CNBC’s senior newspaper Ganesh Rao, the writing of London. This week, after I sit with the Commerce Secretary of the country Piyas Goyal, I look at the limit of India’s desire and trade deals. Enjoy!

This report is from the CNBC’s “Inside India” newspaper this week that makes you comment on the emerging powerhouse and its meteorite growth on time, intuitive news and markets. Likes what you see? You can subscribe Here.

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One week after India, India, Donald Trump, on Wednesday, said that India has been hitting 25% rates in South Asian countries since August 1.

He is studying his consequences, saying that the Indian government has responded with caution so far, while protecting favorable conditions in the transaction with the UK and during the bargaining for more US concessions.

Trump’s decision also shows a strong opposite of the recently optimistic tone of the recent negotiations with the White House.

Last week when I met Indian Commerce Minister Piush Goyal, he told me that The discussion was “extremely good progress And he believes that India will “secure priority rates” compared to our balance and our competitors.

Blueprint with Britain

This is a world with Washington from a positive mood around the comprehensive financial and trade agreement with the UK earlier this month.

The contract is estimated Britain’s GDP raise $ 8.8 billion a year According to the UK government and the bilateral trade is prolonged by $ 25.5 billion.

According to Duh Bank’s economists at the end of the day, the possession of the British government could also increase $ 2.5 billion.

The agreement is parpically, which means that the UK will remove the rate above 99% of all Indian goods, which is currently over 73%, the JP Morgan’s chief Indian economist Sajjid Chinoy is the most effective rate for Indian exporters.

The rate on Scotch Whiskey will be cut from Britain, a large export of Britain One amazing 150% to 75% The first day of the contract and the next decade will go down to 40%. Likewise, the rates on the UK auto, which can be more than 110%, will be reduced to 10% under the new quota system.

“I think this is much more,” said Keshav Murugesh, president and chief executive officer of the Confederation of Indian Industry UK India Business Forum. WNS?? “Now this is a perfect strategic partnership for the future.”

Some friction is always permanent

Despite the consensus of the agreement, the final agreement does not include the discount for India from the UK’s carbon tax starting in 2027.

Goyal said India will oppose any such solution, which he featured as “Terrif Non -Terrifies”.

“India will continue to have every option available under the World Trade Association to prevent such measures from harassing trade between the two countries,” Goyal said. “We deserve the right to take appropriate action by international law.”

As part of the trade agreement, both nations did not agree to the new investment agreement.

In 2017, India left the previous investment agreement with the UK and many other countries.

Goyal reduced the importance of his absence and indicated that the direct investment in India was “only increased by zaps and borders” despite the lack of guarantee of such investors.

Vaccably, India did not allow the UK’s diary and agricultural products to allow free access.

About half of India’s population is involved in agriculture and the government sees them as a sensitive voting block.

Goyal said, “For the benefit of our farmers, we are always sensitive to our (in the interest of micro, small and medium enterprises) and ensure that our area of concern is well protected,” said Goyal. (The vrat feels a bit stronger)

It appears here that India’s desire to open the market, pushing US President Donald Trump, is in its limits. Truth social post Show.

India is challenged by the complexity of the “most favorite nation” principle of the World Trade Organization. In a bilateral negotiation in the MFN Claus, any rate paid to a country must be increased to all other WTO members.

If India acknowledges the demands of the US demands on sensitive products such as agriculture, then it is likely to offer similar words to rivals like the United Kingdom and European Union, possibly conscientious, multinational trade liberalization.

The outcome of the negotiations with the United States will be a definite test for India’s authorities.

“I think people believe in India. People enjoy working in India. This is the recipe. This is the act of the world’s fastest growing economy today,” Goyal further said.

However, however, is based on action on an agreement related to the United States.

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HDFC Bank chief economist Sakshi Gupta said that government expenses and support for infrastructure and capital goods have been strong, while India’s use is back.

Abhinav Bharti, head of Indian Equity Capital Markets in JP Morgan, said that raising capital in the IPO is usually “breathing” when the secondary market is extremely volatile.

Anuhuti Raje, head of the standard of India’s India Economics Research, said that if approved, India can adopt the cost of replacing US crude oil from Russian.

Must know

US President Donald Trump announces 25% rates on India. In addition to that, India too will have to pay a penalty“Trump looks as unjust, and due to the trade policies of Trump to buy military equipment and energy from Russia, the President announced on Wednesday.

India overtaken China in the export of smartphones to the United States According to the Research Firm Canalis data, 44% of the imported US smartphones imported in the second quarter were. Gathered in IndiaMore than 25% of China.

Chinese citizens can get Indian visas again. New Delhi resumed Giving a tourist visa to Chinese citizens July 24. This is a d-aches of stress between the two countries, which Trade in June 2020 According to royators, on their conflicting Himalayas border.

– Yeoo Boon Ping

In the market

Indian shares have lost steam this month Nifty 50 The index for the month below 3%. This year the index has increased by 7.7%.

The ten -year Indian government bond bench bench has increased the flat 6.35% mark since last week.

Is coming

August 1: Gold jewelry maker Shanti Gold International IPO, HSBC Manufacturing PMI in July

August August: Security and observant company Aditya Infotech and non-bank finance company Lakshmi India Finance IPO, HSBC Services PMI in July

August August: Reserve Bank of India interest rate decision, Pre-Engineered Building Firm M&B Engineering, Real Estate Company SRI Lotus Developers and Realty and Securities Depository National Security Depository IPO

Every week, CNBC’s “Inside India” News Show gives you news and market commentary on emerging powerhouse businesses and its growth. Livestream on shows and highlights on YouTube Here??

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