Latest news with #WorldTradeOrganisation
Mint
10 hours ago
- Business
- Mint
India-US trade deal: American delegates to visit New Delhi to hold sixth round in August. Details here
Representatives from the United States are set to visit India on 25 August 2025 for the next round of negotiations for the proposed India-US trade deal, news agency PTI reported on Tuesday, 29 July 2025, citing officials aware of the development. 'The US team is visiting for the sixth round of talks,' the official told the news agency. He also mentioned that the two nations will continue to negotiate an interim trade deal as US President Donald Trump's 1 August tariff deadline nears. Trump's tariffs on world nations will be imposed on 1 August 2025 after the end of the suspension period, which means exports from India to the United States will witness the effect of a 26 per cent tariff rate on top of the existing 10 per cent baseline duty. Indian and US delegations finished their fifth round of trade talks last week in Washington. India's chief negotiator and special secretary of the Department of Commerce, Rajesh Agrawal, and Assistant US Trade Representative for South and Central Asia, Brendan Lynch, discussed the trade deal ahead of the tariff deadline. According to the report, both nations are looking to finalise an interim trade deal before the August tariff deadline. The reciprocal tariffs were imposed on 2 April 2025 and were supposed to take effect from 9 July 2025. However, the deadline for the imposition of the import duties was later extended to 1 August 2025. India, in its trade negotiations with the US, has hardened its position on the US's demand for import duty cuts on agriculture and dairy products. However, the country has not given any import duty cuts on these products to any of its trading partners, as per the agency report. Farmer associations across India have also requested the government not to include any issues related to agriculture in the trade deal. India aims to remove the additional 26 per cent tariffs, along with the 50 per cent rates on steel and aluminium and 25 per cent tariffs on automobiles. The nation has also reserved its rights under the World Trade Organisation (WTO) to impose retaliatory tariffs on the Western nation. India also wants tariff cuts on textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas. In exchange, the United States is seeking tariff cuts on industrial goods, automobiles, especially electric vehicles, wines, petrochemical products, agri goods, dairy products, apples, tree nuts, and genetically modified crops.
Mint
11 hours ago
- Business
- Mint
India-US trade deal: American delegates to visit New Delhi for sixth round of talks in August. Details here
Representatives from the United States are set to visit India on 25 August 2025 for the next round of negotiations for the proposed India-US trade deal, news agency PTI reported on Tuesday, 29 July 2025, citing officials aware of the development. 'The US team is visiting for the sixth round of talks,' the official told the news agency. He also mentioned that the two nations will continue to negotiate an interim trade deal as US President Donald Trump's 1 August tariff deadline nears. Trump's tariffs on world nations will be imposed on 1 August 2025 after the end of the suspension period, which means exports from India to the United States will witness the effect of a 26 per cent tariff rate on top of the existing 10 per cent baseline duty. Indian and US delegations finished their fifth round of trade talks last week in Washington. India's chief negotiator and special secretary of the Department of Commerce, Rajesh Agrawal, and Assistant US Trade Representative for South and Central Asia, Brendan Lynch, discussed the trade deal ahead of the tariff deadline. According to the report, both nations are looking to finalise an interim trade deal before the August tariff deadline. The reciprocal tariffs were imposed on 2 April 2025 and were supposed to take effect from 9 July 2025. However, the deadline for the imposition of the import duties was later extended to 1 August 2025. India, in its trade negotiations with the US, has hardened its position on the US's demand for import duty cuts on agriculture and dairy products. However, the country has not given any import duty cuts on these products to any of its trading partners, as per the agency report. Farmer associations across India have also requested the government not to include any issues related to agriculture in the trade deal. India aims to remove the additional 26 per cent tariffs, along with the 50 per cent rates on steel and aluminium and 25 per cent tariffs on automobiles. The nation has also reserved its rights under the World Trade Organisation (WTO) to impose retaliatory tariffs on the Western nation. India also wants tariff cuts on textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas. In exchange, the United States is seeking tariff cuts on industrial goods, automobiles, especially electric vehicles, wines, petrochemical products, agri goods, dairy products, apples, tree nuts, and genetically modified crops. The report also cited export data, which showed that the total merchandise export to the United States jumped 22.8 per cent to $25.51 billion in the April-June quarter of the 2025-26 fiscal year, while the imports were at $12.86 billion, marking a 11.68 per cent rise.
Time of India
2 days ago
- Business
- Time of India
Tariff trouble: Multilateralism in the time of unilateral trade actions
As nations frantically pursue trade deals with the US, many governments and trade experts have raised concerns regarding unilateral tariffs potentially violating the Articles of the General Agreement on Tariffs and Trade (GATT), which serve as the foundation for the World Trade Organisation (WTO). The US government holds the view that the WTO regime has been unfair to their economy, and to redress the imbalance caused by trade helmed by WTO rules, the US needs tariff protection and fair market access to other countries. While many rue the powerlessness of the WTO, a germane question to ask is how come the multilateral trading system came to be seen as a villain or, worse still, a side actor in the saga of international trade. Souring on rules based free trade Any international body created by countries needs to reconcile the conflicting urges towards national sovereignty versus international welfare and fair play. In fact, before the founding of the WTO in 1995, there were fierce debates, especially in developing countries, about the potential surrender of economic sovereignty. A notable Opposition leader in India and ex-Prime Minister had stated at that time, 'It is the West's attempt to transgress on our sovereignty.' Prior to 1995 and later, the developed countries, including the US, led the charge in convincing developing countries that such surrender would lead to more trade and economic betterment. In the past decade, however, the US and some developing countries have openly expressed doubt about the benefits and efficacy of the WTO. The latest actions of the US government in imposing tariffs, based on its perception of national interest and negotiating strength, were waiting to happen. The current US administration only acted upon the thoughts that have been circulating for more than a decade. The fact that the dispute settlement understanding under the rules of the WTO is ineffective due to a defunct appellate body shows it up as an ineffectual organisation. Its claims to set and enforce a rules-based order for the world trade ring hollow. The consensus-based approach wherein even one dissenting member can defeat a proposal is another hurdle in effective multilateral action. Explore courses from Top Institutes in Please select course: Select a Course Category Degree healthcare MBA Artificial Intelligence Others MCA Product Management Project Management Public Policy Design Thinking Technology Leadership Healthcare Finance CXO Data Science Data Analytics PGDM Data Science Operations Management others Digital Marketing Management Skills you'll gain: Data-Driven Decision-Making Strategic Leadership and Transformation Global Business Acumen Comprehensive Business Expertise Duration: 2 Years University of Western Australia UWA Global MBA Starts on Jun 28, 2024 Get Details A bystander in world trade If one looks at the history of international organisations, the WTO's failures have parallels in the League of Nations, which was formed after the First World War. While the League of Nations was primarily a political body, less concerned with trade, its demise does hold lessons for all international bodies. Leaving aside the onerous terms of peace imposed on Germany after the First World War, the League collapsed as it depended upon the consensus of all members and did not have an enforcement mechanism for its decisions. While it is early to foretell a similar collapse of the WTO, there is no doubt that recent events have reduced it to a bystander in world trade. The Future: A new multilateral trade regime Even as countries negotiate with the US for 'tariff deals,' they should not lose sight of the need of reviving and strengthening a rules-based world trade order. In the absence of a credible rules-based world trade regime, disruptions like the current one can happen with unpredictable frequency. A breakdown in international trade law would create chaos and a decline in trade as well as global prosperity. It remains to be seen which countries in the world will take the initiative to build a new WTO and how far they would succeed in convincing the others. Over the years, the jurisprudence and institutional knowledge generated by the WTO, together with bodies like the World Customs Organisation, have served international trade well. They cannot be allowed to go in vain. Live Events Examples are common standards on classification, valuation, origin of goods, agreement on technical barriers to trade, and agreements on subsidies and countervailing measures, to name a few. Even though they are not perfect tools, they have considerably reduced arbitrariness in trade governance across the world. The three pet peeves of some governments against the WTO seem to be a lack of a mechanism to set right trade imbalances, an inordinately long dispute resolution process, and dysfunction in its appellate body. Add to that the need for consensus in decision-making, which makes decisions on contentious issues a near impossibility. Yet another gap is the WTO's irrelevance in the global monetary system, components of which do impact global trade. Perhaps a reimagined multilateral trade organisation, which is much stronger and more agile and alive to its members' concerns than the WTO, is needed. The unilateral trade actions , reactions by some governments, and recent disruptions clearly underscore such a need. The writer is an independent trade expert.
RTÉ News
4 days ago
- Business
- RTÉ News
Ireland faces 15% tariff reality as EU-US deal takes shape
The EU and US are edging closer to a trade deal revolving around tariffs of 15% imposed on European goods. The details of any agreement will be critical. Recent discussions have come close to an agreement only to be derailed at the last minute by the White House - and that could happen again. Based on what is known so far, the EU-US deal would include a baseline tariff of 15%. Some existing tariffs would be folded into that 15% meaning it would be an all-in tariff. For example, it would include the existing "most favoured nation" duties of 4.8% which exist currently under World Trade Organisation rules. However, there would be some exceptions. The punitive 50% rate on steel and aluminum, introduced by US President Donald Trump on exports from the EU, would remain in place. It is understood that what may emerge is an agreement between the two sides that sees the threatened 1 August cliff edge of 30% tariffs on EU goods removed. It is now long past time to strike a deal. Tánaiste Simon Harris says he remains "cautiously optimistic" a deal could be reached for a "positive future EU-US trading relationship within the coming days". He adds: "It is now long past time to strike a deal." Under the framework, which is being negotiated, the US would have some immediate implementation steps, but some aspects would still need further negotiations. In a boost for Irish exporters, it is expected aircraft, medical devices and spirits would be covered by a zero for zero tariff arrangement. The critical part for Ireland is what would happen to exports of pharmaceuticals and computer chips to the US. At present, there are no tariffs on either sector while the US holds an investigation on national security grounds into imports of those goods. However, indications are that the investigation may result in the EU seeing a 15% tariff imposed on both pharmaceuticals and computer chips once the process concludes. If that rate is introduced, it would have significant consequences. Pharmaceuticals are Ireland's biggest export to the US and were valued at €44bn last year. Any company faced with a new tariff is going to have to figure out how it will be paid. Exporters will be asking whether they can make internal savings, adjust supply chains or pass it on to customers? Donald Trump told Taoiseach Micheál Martin on St Patrick's Day that Ireland "took" American pharmaceutical companies. But despite Mr Trump's comments, no US drug manufacturer with an operation in Ireland has so far threatened to relocate to America. The baseline tariff of 15% for many companies would have significant effects. Simon McKeever, CEO of the Irish Exporters Association, said his organisation would be looking for a "tariff adjustment fund" largely based on the Brexit Reserve Fund of €1bn, which was introduced to help companies when the UK left the EU. While there may be relief if a deal is agreed it would be a much worse trading environment than Irish companies faced last year. Tariffs are fundamentally bad for an export-led economy such as Ireland. Globally, the removal of trade barriers over recent decades has lifted millions of people in developing countries out of poverty. But perhaps the most damaging aspect of the trade war is that it has created enormous uncertainty and put many investments on hold in Ireland and elsewhere. If a deal is agreed companies will know the future landscape. And that is likely to unlock investments which had been put on hold.
Business Recorder
6 days ago
- Business
- Business Recorder
WTO reform prospects clouded by investment deal block
GENEVA: The World Trade Organisation suffered a setback at its General Council meeting in Geneva on Wednesday after a small group of countries again blocked an initiative designed to boost foreign investment, two sources told Reuters. The Investment Facilitation for Development, which aims to reduce bureaucratic hurdles to encourage foreign direct investment, particularly in developing and least-developed countries, was blocked by India, South Africa and Turkey, they said, asking to remain anonymous due to the sensitivity of the matter. The WTO requires full consensus from all 166 members for a measure to be included in its formal rulebook. The measure has been formally backed by 127 members. Trade sources described the latest block as a 'disturbing' signal, as WTO members weigh sweeping reforms to revitalise the global trade body, which has been challenged by a wave of tariffs imposed by the Trump administration. Proponents of reforms are pushing for changes to the consensus-based decision-making process in particular to stop countries from blocking measures and bogging down initiatives. India, South Africa and Turkey were not immediately available for comment. 'The integration of the IFD into the WTO framework is a litmus test for members' willingness to turn reform discussions into practical action,' a trade delegate told Reuters, describing it as disappointing. The EU delegation told members that the IFD did not hurt anyone's interest and that blocking it would 'endanger' the multilateral trade system, according to a statement seen by Reuters. India and South Africa previously opposed the inclusion of the measure at high-level meetings, including the 2025 ministerial meeting in Abu Dhabi, where it failed to gain consensus. Keith Rockwell, a trade analyst at the Hinrich Foundation and former WTO communications director, told Reuters that India's continued obstruction of the IFD agreement is partly a tactic to gain leverage on food security negotiations.
