8th April 2025 (14 Topics)
1
Apr
2
Apr
3
Apr
4
Apr
5
Apr
7
Apr
8
Apr
9
Apr
10
Apr
11
Apr
12
Apr
14
Apr
15
Apr
16
Apr
17
Apr
India’s Stance on ASEAN’s Joint Strategy Against US Tariffs
Context
India has declined to participate in the ASEAN-led effort to develop a joint response strategy against the reciprocal tariffs policy of former US President Donald Trump. New Delhi is instead prioritizing bilateral trade negotiations with Washington, signaling a strategic and competitive approach to trade diplomacy.
ASEAN’s Approach
- The United States announced “reciprocal tariffs” against all major trading partners
- Reciprocal tariffs refer to imposing the same level of tariffs on countries that impose high tariffs on US exports.
- Trump’s trade policy was based on the idea that the US should not allow countries to enjoy low-tariff access to its markets while they impose higher barriers on American goods.
- ASEAN member countries, particularly export-driven economies like Vietnam, Malaysia, and Thailand, have been disproportionately affected by such tariffs.
- ASEAN is considering a joint strategy to counter US pressure and negotiate collectively.
- However, this also reflects their own internal competition for US market access.
Why India is not joining ASEAN’s effort?
- Competitive Trade Interests: India sees ASEAN economies as direct competitors in sectors like textiles, electronics, and agriculture. Joining their bloc could undermine India’s own negotiating space.
- Bilateral Focus with the US: India is already engaged in bilateral trade agreement (BTA) talks with the US. On a recent visit, EAM S. Jaishankar and US Secretary of State Marco Rubio discussed fast-tracking the BTA, indicating high-level political will.
- Global Diversification Strategy: India is also pursuing Free Trade Agreements (FTAs) with:
- EU, UK, Australia, New Zealand
- Exploring pacts with Latin American and West Asian
- The goal is to diversify export markets and reduce over-dependence on a few countries.
Strategic Implications for India
- Maintaining Autonomy in Trade Policy: India prefers bilateral arrangements that allow for customized benefits, rather than multilateral pressure groups.
- Geoeconomic Positioning: By independently negotiating with the US and other major economies, India aims to strengthen its leverage in global trade.
- Indo-Pacific Dynamics: India’s trade policy is part of a broader strategic vision for the Indo-Pacific, balancing both security and economic interests.
More Articles
Courses
Study
Notes
Home
Resources
More
