US-Indonesia trade pact shows risks of pressure tactics; India must tread cautiously: GTRI

The US-Indonesia trade pact reflects how Washington's pressure tactics can compel countries to cut tariffs, commit to large purchases, and loosen regulatory control, and India should tread cautiously in ongoing trade talks to avoid similar concessions, economic think tank GTRI said on Wednesday.

Indonesia gave up far more than it gained, removing 99 per cent of its tariffs on US goods, agreeing to buy USD 22.7 billion in American products, and weakening important rules that protected its industries, food safety, and digital space, the Global Trade Research Initiative (GTRI) said.

"India now faces similar US demands, including allowing remanufactured goods, opening up agriculture and dairy, accepting genetically modified (GM) feed, and adopting US rules on digital trade and product standards," GTRI Founder Ajay Srivastava said.


He added that accepting American standards on cars, medical devices, or food, without any guarantee of reciprocity, would put India's consumers at risk.

"Handing over control of data under the name of digital trade would give foreign companies power over India's digital future. India must stay alert. Any trade agreement should be based on clear, public assessments of costs and benefits," Srivastava said.

Concessions especially on critical areas like food, health, digital, and IP (intellectual property) must be fair, reciprocal, and aligned with India's development needs, he added.

"Otherwise, India risks giving up long-term control for short-term gains, a decision it may regret later," he said.

India and the USA are negotiating a bilateral trade agreement. So far, five rounds of talks have been completed, and the sixth round will happen here next month.

Both sides are looking to finalise an interim deal before August 1, the deadline for suspended Trump tariffs.