A thumbs down to unilateralism (US, WTO, India and the world trade)

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 A thumbs down to unilateralism (US, WTO, India and the world trade)

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• On a knife-edge : The US has taken many one-sided decisions on economic relations with India, since 2018. India retaliated with newer tariffs (on American imports into India) as well. So, Trump is now targetting both China and India.
• What does the US want : Secy of State Mike Pompeo said clearly that they need (a) greater market access, and (b) removal of trade barriers.
• Problems with India : In the past, the USTR (US Trade Representative) and USITC (US International Trade Commission) have investigated India's trade policies, following which the US govt. wanted changes to Indian trade practices. The 2019 demands arise from the USITC investigations in 2013 and 2015.
• Which law used : The investigation into Indian practices were done under the 'Tariff Act of 1930' by a House Committee and a Senate Committee. It wanted to know how the Indian govt. protects domestic businesses and discriminated against US imports.
• Issues of propriety, procedures, substance : The USITC reports raise these issues.

1. Propriety - All of India's trade policies that were examined (including IPR laws) were done under US domestic laws. That is sheer unilaterialism, which is unacceptable in this age and time of multilateralism. That is why the GATT was estd. post Second World War, and then the WTO in 1995. The US must meet India at the WTO and resolve the issues.
2. Procedures - The US agencies became the judge and the jury in the investigations, and are engaging in having the findings implemented, too! 
3. Substance : If Indian policies are broadly consistent with the WTO norms, then the US must not defy the agreed rules. All tariffs of India are part of the agreed-upon tariff rates as per Uruguay round negotiations. India even reduced agri tariffs, while US does not budge on agri subsidies at all. That ensures no other agri exporter can compete with local US agri products, and the US can safely claim "low tariffs" for agriculture! Where it does put tariffs, they are very high - 350% on tobacco. 

• What can India do : Since it is obvious that America is pushing unilateral decisions when it should not be, India should resist it. India must keep talking to the Americans, while raising the multilateral imperative on all global forums, to keep the rules-based trading system intact.
• Summary : The American administration has decided to pursue a unilateral trade agenda with India, for which they have neither the right nor the moral authority, and India must resist it.

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