India should halt sanctioned oil imports, seek tariff relief, and fair trade talks with US: GTRI

Economic Times
Economic Times
2M ago
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The Global Trade Research Initiative (GTRI) recommends India stop importing oil from sanctioned Russian firms to protect trade interests and negotiate tariff relief with the US. This matters as it addresses potential sanctions that could disrupt India's financial systems.
India should halt sanctioned oil imports, seek tariff relief, and fair trade talks with US: GTRI
A What happened
The Global Trade Research Initiative (GTRI) has proposed a three-step plan for India to protect its trade interests amid ongoing negotiations for a Bilateral Trade Agreement (BTA) with the United States. The initiative urges India to halt oil imports from sanctioned Russian firms, such as Rosneft and Lukoil, to avoid exposure to secondary sanctions that could severely impact India's financial and digital systems. Following the cessation of these imports, GTRI recommends that India press the US to withdraw the punitive 25% tariff on Indian exports related to Russian oil. Finally, trade negotiations with the US should only resume once tariffs are normalized and under fair terms. The urgency of this proposal is underscored by the recent sanctions imposed by the US, which have already led to a significant decline in Indian exports and increased duties on goods.
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Key insights

  • 1

    Impact of US sanctions: US sanctions threaten India's access to vital financial systems.

  • 2

    Tariff implications: The 25% tariff has doubled total duties on Indian goods.

  • 3

    Trade negotiations: India's trade talks with the US hinge on tariff normalization.

Takeaways

The GTRI's recommendations highlight the need for India to navigate complex international trade dynamics carefully, particularly in light of US sanctions and tariffs that could jeopardize its economic stability.

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