India Should Learn from US-UK Trade Pact Before Finalising Deal with America: GTRI

GTRI urges India to ensure trade deal with US is reciprocal and not politically driven​

New Delhi, May 10 — India should tread carefully while negotiating a trade agreement with the United States and avoid falling into an imbalanced arrangement similar to the recently announced US-UK pact, the Global Trade Research Initiative (GTRI) warned on Saturday.

The think tank said the limited trade deal signed between the US and the UK on May 8 reveals important lessons for India, especially given that the UK has made significant tariff concessions, while the US offered only limited market access in return.

“If the UK-US deal sets the template, India can expect growing US pressure to finalise a mini-deal of its own — focused on tariff cuts and key strategic commitments rather than a comprehensive Free Trade Agreement (FTA),” GTRI said.

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Key Concerns for India: Agricultural, Auto, and Strategic Imports​

According to GTRI founder Ajay Srivastava, India may be asked to lower tariffs on a sensitive range of agricultural products, including:

• Soybeans
• Ethanol
• Apples
• Almonds
• Walnuts
• Raisins
• Avocados
• Spirits
• Genetically modified (GM) food items
• Meat and poultry products

Srivastava also highlighted that tariff cuts on automobiles are expected, pointing to India’s recent move under its trade agreement with the UK, where duties on certain vehicles were slashed from 100% to 10%.

The US, he added, may also push for large-scale commercial purchases, including:

• Oil and Liquefied Natural Gas (LNG)
• Military and civilian aircraft from Boeing
• Helicopters
• Nuclear reactors

Disparity in US-UK Pact Raises Red Flags​

GTRI emphasised the uneven nature of the US-UK trade deal, noting that the UK has agreed to cut tariffs on over 2,500 US goods, ranging from olive oil to ethanol, signaling a broad market opening. In contrast, the US has reduced tariffs on fewer than 100 UK products, with most cuts limited to a modest 10% ceiling, rather than full eliminations.

“India must not walk into a similar trap,” Srivastava cautioned. “Any trade deal with the US must be reciprocal and equitable, not one-sided or politically driven.”

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High-Level Bilateral Talks Underway​

A delegation of senior Indian officials is expected to visit Washington later this month to continue discussions on the proposed Bilateral Trade Agreement (BTA).

Last month, India’s chief negotiator Rajesh Agrawal, Special Secretary in the Department of Commerce, held three-day talks with Brendan Lynch, Assistant US Trade Representative for South and Central Asia, in an effort to accelerate negotiations.

GTRI underscored the need for India to pursue a balanced, fair, and sovereign approach during these talks. If a mutually beneficial framework cannot be reached, Srivastava concluded, India should not hesitate to walk away from the deal.