Prioritise national interest in trade deal with US: Congress to Centre

Congress on Saturday called on the Centre to give renewed focus to Free Trade Agreements (FTAs) with the European Union, the UK, West Asia, China, Japan, Latin American countries, and the African Union, while continuing its engagement with the US amid the tariffs imposed by President Donald Trump.

Addressing a press conference, senior Congress leader Anand Sharma stressed that in any future trade agreement with the US, India must prioritise its services sector.

Sharma's comments came in response to the sweeping tariffs announced by US President Trump on April 2, which target over 180 countries, including India. Starting April 9, India faces a 27% tariff on various goods, severely impacting sectors like textiles, pharmaceuticals, information technology, electronics, agriculture, and automobiles.

The former Union commerce minister described the situation as a “trade war,” calling it a grave concern for India and the global economy. Sharma said, “The war has started,” and urged India to explore alternative trade partnerships with Europe, the UK, the Gulf, Latin America, and the African Union in light of the US's aggressive trade stance.

He further warned that Trump's actions threaten to create major upheavals in both rich and poor economies.

The Congress leader stated that the decision has turned the global trade system upside down. “The only organisation, the World Trade Organization (WTO), has the authority to conduct rule-based trade,” he said, accusing Trump of violating trade norms.

Sharma acknowledged that the US remains India's largest trade partner. “India must engage with the US,” he said. However, he emphasised that India's national interest should be paramount, and sectors affected—such as dairy, farming, textiles, poultry, and others—must be taken into account.

“It has to be a calibrated approach. There should be a national consensus. After 75 years, havoc has been wreaked on the entire world trading system. Leaders of all opposition parties must be taken into confidence. Stakeholders must know about the concessions we are giving to the US,” he added.