India should proceed carefully in its ongoing trade negotiations with the United States, as the absence of Fast Track Trade Authority in the U.S. makes any potential agreement subject to Congressional amendments, according to a report by the Global Trade Research Initiative (GTRI) on Tuesday.
The think tank highlighted that post-agreement certification requirements allow the U.S. to reassess trade agreements after they are signed, potentially requiring India to implement additional domestic legal, regulatory, or policy changes beyond the original deal.
“As negotiations continue, India must navigate legal complexities and ensure that trade agreements are mutually beneficial,” said GTRI Founder Ajay Srivastava. He pointed out that without Fast Track Authority, any trade deal negotiated by the U.S. President could be delayed, amended, or even rejected by Congress.
Historically, the Fast Track Trade Authority (also known as Trade Promotion Authority) enabled U.S. Presidents to negotiate trade deals that Congress could only approve or reject without modifications. However, this authority lapsed in 2021 and has not been renewed, increasing the uncertainty surrounding U.S. trade agreements.
Srivastava further emphasized that post-FTA certification requirements could pose additional challenges for India. This mechanism allows the U.S. to unilaterally assess whether a trade partner has fully complied with the agreement before it takes effect, sometimes leading to additional demands not originally agreed upon.
“India must carefully assess these factors, as they create uncertainty and potential policy risks in finalizing any trade agreement with the U.S.,” Srivastava added.
Formal talks between Indian and American officials on the proposed trade agreement are set to begin on Wednesday.
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