- 8 hours ago
Speaking at a panel session on modern trade agreements, Union Minister Nirmala Sitharaman detailed India's strategic trade posture amid mounting global pressures. Addressing negotiations with the European Union, she highlighted that India has opened up 92.5 percent of its tariff lines and 97 percent of trade value, mirroring substantial access from the EU side. Touching on the domestic economic impact, she affirmed that the trade pact covers critical labor-intensive segments such as textiles, footwear, and toys, stating that "the trade deal has actually worked in favor of jobs." Sitharaman also warned about shifting dynamics in global commerce, observing that "tariff has become weaponized" as an instrument beyond traditional multilateral frameworks. Discussing ongoing bilateral negotiations with the United States and trade imbalances with China, she stressed the necessity of sustained dialogue and mutual concessions to navigate current geopolitical challenges.
Category
🗞
NewsTranscript
00:00The session today is called The Mother of All Deals and Her Offspring, The Next Generation of Trade Agreements.
00:07Let's begin with you, Minister Siddharaman.
00:10We've seen a lot of challenges in the deals, in the trade agreements, negotiations that you've carried out.
00:18How is India shielding its own markets and exporters from U.S. tariff pressure and Chinese overcapacity without turning protectionist?
00:31Without turning protectionist is the word.
00:35We've been negotiating trade deals and the one with the European Union, as was very nicely called out by Madam
00:51Ursula von der Leyen,
00:54that it is a mother of all deals, is a standing out example of how India is negotiating and finalizing
01:04trade deals.
01:06If the mother of all deals is absolutely appropriate, in that it is going to be an agreement between people
01:15totaling 2 billion
01:17and one-fourth of the world's trade is going to be covered.
01:21One-fourth of GDP, global GDP, is covered through this agreement.
01:27And the questions there are of good complementarity of the two economies, leading to selection of market access that you
01:39would want to give,
01:41and be sure that the competitiveness is not affected.
01:46But the most important thing is, in the final data that we have arrived at, India has opened up 92
01:55.5% of all its tariff lines through this agreement.
02:02And about 97% of all its value, in terms of value, and when you're looking at the European Union
02:10side, if I'm right,
02:12they've opened up 99% in terms of value, and possibly 97% of all the tariff lines.
02:24So, despite the decimal points and the numbers, both the sides on tariff lines and value are above 90%.
02:35That's impressive.
02:37And that is why I'd say the size of the European economy, the size of the Indian economy,
02:43the growing economy that is India, the middle class that is India,
02:48the size of the middle class, which has got buying capacity, which is in India,
02:55you've tied up two very powerful economies, if you look at, for the next 20, 30 years.
03:03So, it's certainly a deal about which you can talk in great detail.
03:08And in this, what stands out is, each of our interests, where sensitivities lie,
03:17whether it is agriculture for us, agriculture equally for European Union,
03:23items within agriculture which are even more sensitive,
03:27whether it's dairy or your meat for the European Union,
03:32whether it is sewage for us, again, dairy for us, and so on.
03:39So, you can always look at the negotiating details and see where it is possible to open up.
03:46We've opened up as much as the European Union.
03:49So, in a way, in today's terminology,
03:5610 years ago, you wouldn't have had to do this paring out of details.
04:01You would broadly agree on terms and get going with it.
04:06Today, you want to be conscious
04:09that the supply chains are not going to be disrupted.
04:13But where the supply chains have already got disrupted,
04:16you're finding a newer partner to ensure that supply chain continues.
04:20So, in the current reality, bilateral, or I would still call this bilateral,
04:27even within a larger body, the EU, comes with a cluster of countries.
04:34Okay.
04:35Because, ultimately, you're tailoring the agreement
04:39to keep national interest alive,
04:42but to survive in a very challenging global environment
04:47where no WTO-related laws have been left to be respected.
04:55Everybody's broken the law here and there.
04:58And so, you're making it up now.
05:00Okay.
05:00But you're setting a template,
05:01and we should ask about whether this is a template
05:04that you would be following for other negotiations as well,
05:08particularly with America.
05:09How is it different,
05:10and what are the concessions that India had to give
05:13to have the agreement go through?
05:16See, one thing about the U.S. agreement,
05:20which is yet to get finalized,
05:25it's been a hard and very rigorously negotiated agreement.
05:31The agreement's negotiations are still ongoing,
05:34although we'd like to believe that both the sides have reached a plateau,
05:39beyond which giving or taking might be very, very difficult.
05:44But maybe if there are rooms to operate from,
05:50both sides would do it.
05:52But what is the predominant feature of the trade relations between India and U.S.?
06:03The trade balance is very much in our favor.
06:09Naturally, the deficit is there in their side,
06:12or the balance is going unfavorably for the U.S.
06:15So they would want to reduce that imbalance.
06:20And their desire would be to see as much as possible,
06:25get some kind of, from their point of view,
06:28making up for all that they've lost over these years.
06:32From our side, in a way,
06:36and I'm not comparing at all,
06:38but I want to put that before, you know, this learned audience,
06:42as such templates can exist for different countries
06:46and different parts of the world.
06:48If that principle of trade imbalance,
06:53which has to be reduced for them to consider anything more,
06:59I would think that is the way in which the U.S. would look at China,
07:04or India would look at China.
07:07The trade imbalance with China for India, for instance,
07:10since 2014, has been growing exponentially.
07:17So when you're talking of trade and trade imbalance
07:21being the sole criteria to reduce the imbalance,
07:25to what extent beyond negotiation can you go?
07:31Negotiation used to be the only platform
07:34through which countries could highlight the discrepancies,
07:38highlight the lopsidedness,
07:41and say, would we want to correct this?
07:44And how would you correct it?
07:45Because you have demand in your country,
07:47I can supply, so open up on that.
07:49I can open up on something
07:51so that some of your goods can come to me.
07:54That was how negotiations went.
07:57Now the imbalance is being sought to be addressed
08:02through other means,
08:03where you rightly said,
08:05tariff has become weaponized.
08:08Tariff was an instrument of negotiation.
08:11And tariff had a certain framework
08:14within which you will apply it.
08:18Today, framework is there,
08:20tariff's some going.
08:22So I can probably take the same position,
08:25can I not,
08:26with China?
08:27Because it's so lopsided,
08:30it is terribly against me.
08:32But no, you can't.
08:33You will have to talk it out.
08:35You will have to negotiate.
08:37You will have to have some give and take.
08:40That's the difference,
08:41but that's equally the items that you can compare.
08:44Okay.
08:45Minister Haddad,
08:47that's the biggest challenge today
08:49in negotiating a trade deal,
08:51that what are the concessions,
08:53which is the country that you're dealing with.
08:56In your appreciation,
08:57how should Europe respond
08:58to U.S. economic coercion?
09:01Especially,
09:01I ask you this,
09:03because how do you keep
09:05the transatlantic relationship alive
09:07and intact with that coercion?
09:11First,
09:12if I can maybe follow up quickly
09:14also on the EU-India FTA.
09:18Beyond the numbers,
09:20when you think about the opportunities
09:21and the scale of this deal,
09:24and for us,
09:24it's cutting 4 billion euros in tariffs,
09:27it's the opportunity
09:28to double the trade
09:30between Europe and India,
09:31I think it's also
09:32sending a very strong political
09:35and strategic message to the world
09:37that we are loyal,
09:40predictable,
09:41reliable partners.
09:42And in this moment
09:43where indeed trade relations
09:45are being weaponized,
09:46they're being instrumentalized
09:47as instruments of coercion in power,
09:49we're showing that
09:51we are actually promoting
09:53a world of cooperation
09:54and multilateralism,
09:55that it induces
09:58strong negotiations,
10:00we have interests to defend,
10:03we have areas
10:04where we're progressively
10:05reducing tariffs,
10:07but we're doing this
10:08in a spirit,
10:10once again,
10:11of cooperation and respect.
10:14And when you are
10:15in an environment
10:16where you have,
10:17on the one hand,
10:18tariffs being imposed
10:19by allies,
10:20in this case,
10:21the United States,
10:21but also subsidizable capacities
10:24coming from China,
10:26destabilizing our markets
10:28in Europe,
10:28if you look at
10:29the Chinese industries
10:31in areas like
10:31automotive and EVs,
10:33it's eight times more subsidies
10:35than in Europe,
10:37then of course,
10:39having this trade deal
10:40being signed
10:40and showing that
10:41we're de-risking,
10:42that we're diversifying,
10:43that we're promoting
10:44cooperation and integration
10:46of our economies
10:47aligning on norms
10:47and standards,
10:48is sending a very strong message.
10:50And of course,
10:51it's in our mutual interest.
10:52Now, when it comes
10:53to the transatlantic relationship,
10:56look,
10:57I think that
10:59what we've been seeing,
11:00not just for the last two years,
11:02but if you think about it
11:03for the last 10 years,
11:05is a trend
11:06of the United States
11:08first signaling
11:09its intention
11:10to Europeans
11:11that it's pivoting
11:12to Asia
11:12and that its relationship
11:15and rivalry with China
11:16will be the defining factor
11:17of its foreign policy.
11:20You see this protectionist trend
11:22that goes beyond
11:23just the Trump administration.
11:25The Biden administration
11:26is the one
11:27that adopted
11:27the Inflation Reduction Act
11:29without coordination
11:30with European allies.
11:31It's the one
11:32that also adopted
11:33the Small Business Act
11:34and so forth.
11:35I'm not saying
11:36it's all the same thing
11:37and you have, of course,
11:38different ways to proceed,
11:39but you do have
11:41lines of continuities
11:43and the conclusion
11:45that we should draw
11:46from this
11:46is that we have allies
11:47and we cooperate
11:48and we have strong
11:50security interests
11:51with the United States,
11:53but at the same time,
11:54we should invest
11:55in our own strategic autonomy.
11:56You've seen
11:57in the last few years
11:58the rearmament
11:58of Europeans.
11:59All European countries
12:01are increasing
12:01their defense spending
12:03in especially the face
12:04of Russia's aggression
12:06against Ukraine
12:06at our border,
12:07but also the threat
12:09that Russia is representing
12:10to all of European democracies
12:11through its interference,
12:13through its sabotage operations,
12:16through the kind of attacks
12:17that we've seen
12:18like the one
12:18that's been foiled recently
12:19at the Leipzig airport,
12:21but also invest
12:23in the competitiveness
12:24of our economies.
12:25I'm talking about
12:26the diversification
12:28and de-risking
12:29with key partners
12:30like India,
12:30but it's also the work
12:31that we're doing
12:32within the internal market
12:33where we see
12:35an internal market
12:36that's still way too fragmented
12:37with incredible opportunities
12:39when you look
12:40at the talents,
12:41the startups,
12:41the companies
12:42that we have the opportunity
12:43to go to scale
12:44in areas like AI,
12:46space, defense, etc.
12:48And this is also something
12:49on which we can partner
12:50with India.
12:52And so in the last two years
12:53we've led an effort
12:54at the EU level
12:56to simplify our rules,
12:58to lift the barriers
12:59to our internal market,
13:01to achieve capital markets union
13:03where we still have
13:04hundreds of billions
13:05of euros of savings
13:06across the Atlantic
13:07every year
13:07to irrigate,
13:09to support American
13:10capital markets.
13:11We have a lot of opportunities
13:12to keep them in Europe
13:13to grow our own companies.
13:16And so it's this dual track approach
13:17of focusing on ourselves,
13:19both in defense
13:20and the competitiveness
13:21of our economies,
13:22but also diversifying
13:23with key partners like India.
13:25Okay.
13:26But are these trade deals,
13:28and that's the conversation
13:29we've been having,
13:31children of pragmatism,
13:33reality and a reality check.
13:36And I ask you this
13:36is because you're saying loyalty,
13:38you're talking about predictability,
13:40but does this not come
13:42at the speed and pace
13:44at which it has come
13:45because of Trump's
13:46economic shock doctrine?
13:49Oh, I think you're right.
13:50Of course.
13:51I mean, there is...
13:52Because these deals
13:52took years to negotiate.
13:54Absolutely.
13:55But look how fast
13:56and how clearly,
13:57you know,
13:58pragmatic it looks today
14:00because you signed the deal.
14:01Oh, no, but you're
14:01completely right
14:02that there's a sense of urgency
14:03that was lacking
14:04for a long time
14:04and that the geopolitical environment
14:07in which we are
14:08is accelerating all of this.
14:09You have the trade pressure
14:11coming from the US,
14:11but also from China.
14:13In Europe,
14:14it's 1 billion euros
14:15a year of trade deficit
14:16with a day,
14:17a day, sorry,
14:181 billion euros
14:19a day of trade deficit
14:20with China.
14:21You have countries
14:22like Germany
14:23that have focused
14:23a lot of their trade strategy
14:25and export to China
14:26for a long time
14:27that now for the last two years
14:28have had a trade deficit.
14:30You have,
14:31if you take the geopolitical context,
14:33of course,
14:34the war of Russian aggression
14:35against Ukraine
14:36and then you have
14:37the acceleration
14:38of technological trends
14:39like AI.
14:41All of this
14:42is putting pressure
14:43on us,
14:44but it's also creating
14:46a sense of urgency
14:46for things
14:47that we have been talking
14:48about for a long time,
14:49whether that's
14:49these trade deals,
14:51whether it's
14:51the rearmament
14:52of Europeans
14:53and the cooperation
14:54also you're seeing
14:55to build
14:55an autonomous European
14:57defense industry
14:58or whether that's
15:00what I was mentioning
15:01like the saving
15:02and investment union.
15:03All of these
15:04have been
15:05long debates
15:06in Europe
15:07for a long time,
15:08but I think
15:08it's positive
15:09that we're seizing
15:11this momentum
15:11actually to deepen
15:12the relationship partners
15:14and from a French
15:14perspective
15:15where for the last
15:1730 years
15:18we've had a strategic
15:19partnership with India,
15:20you see
15:20the relationship
15:22of friendship
15:23and trust,
15:24I should say,
15:24between the two leaders,
15:25Prime Minister Modi
15:26and President Macron,
15:28the cooperation
15:29we've had
15:30on defense
15:30and all the areas
15:32in which we want
15:33to deepen that,
15:34seeing also
15:34the upgrading
15:36of the relationship
15:36with the EU itself
15:38I think is very good
15:39news for us.
15:40Well,
15:41Minister Sitaraman,
15:42Minister Haddad
15:43is like a very strong
15:45voice on strategic autonomy,
15:46so in these negotiations
15:48and conversations
15:49that you've been having
15:50with your European partners,
15:52how much of the conversation,
15:53he's already brought it up,
15:54how much of the conversation
15:55dealt with India
15:57procuring Russian oil
15:59and was that
16:00a problem area
16:01or is there more,
16:03again,
16:03is there a reality check
16:04within Europe
16:05on what India needs to do
16:06and how India needs
16:07to protect its own
16:08strategic autonomy?
16:11I was not sitting
16:12at the negotiating table,
16:13but still I can
16:16tell you,
16:16but a lot of things
16:18get discussed
16:19formally,
16:20informally,
16:21post the negotiation,
16:22pre the negotiation.
16:28in Europe,
16:29as much as I understand
16:30till today,
16:31there is no
16:32Lindsey Graham bill.
16:34So,
16:35if that is the answer
16:36to how I would
16:39position the negotiation,
16:41you'll know
16:42a lot of conversation
16:43happens,
16:45but
16:45I don't think
16:47there was a
16:48card on the table
16:49saying,
16:50hey,
16:51this is
16:52going to determine
16:53what we do
16:54next in the negotiation.
16:57That's,
16:58that's actually
16:58quite candid.
16:59Okay.
17:01What does the trade deal,
17:02what do these trade deals
17:04bring for India
17:06apart from
17:06opening up the markets,
17:08but in terms of
17:09employment and jobs?
17:10Because that's something,
17:11Minister Sitaram,
17:12you know,
17:13the youth of India
17:13are asking,
17:14and maybe you'd want
17:15to speak to them
17:16directly.
17:17Let me be frank.
17:19The items
17:21which are getting
17:22exported from India
17:23through this deal
17:25will include
17:28sectors
17:29which are
17:29labour-intensive
17:30in India.
17:32So,
17:32when my export
17:33to a large
17:35block of nations
17:37includes
17:38these items,
17:40whether it is
17:41footwear,
17:42textile,
17:44toys,
17:46some processed
17:47material
17:49components,
17:51they are all
17:52in the micro
17:53and small
17:53medium industry
17:54segment,
17:55which are
17:57labour-intensive.
17:58Particularly,
17:59textile can be
18:00in the larger
18:00segment,
18:01but even then
18:02it includes
18:03a lot of
18:04workforce,
18:06particularly women.
18:08So,
18:09when these items
18:10find an access
18:11into a large
18:12market like
18:13European Union,
18:13these are
18:15segments which
18:16are going to
18:16generate more
18:17jobs,
18:18more exports,
18:18more jobs.
18:19And therefore,
18:20the trade deal
18:22has actually
18:22worked in
18:23favour of
18:24jobs.
18:25Okay.
18:26Let's talk about
18:27agriculture,
18:28because agriculture
18:28and dairy are
18:29very important
18:30aspects.
18:30Minister Haddad,
18:32France has
18:33historically also
18:34been cautious
18:34of agricultural
18:36liberalisation.
18:37In the
18:38conversations that
18:39happened between
18:39India and the
18:40European Union,
18:43were the
18:44safeguards enough
18:45for Paris?
18:46And what was
18:47the conversation
18:47that Paris wanted
18:48to have on
18:49agricultural
18:50liberalisation?
18:52Absolutely.
18:54And I think
18:55in this trade deal
18:56we've actually
18:56made a really
18:57good effort
18:57at protecting,
18:59especially,
19:00the key critical
19:01sectors in
19:02agriculture
19:04and put
19:05necessary
19:06safeguards
19:07which make
19:07it a deal
19:08that I think
19:09was in our
19:10mutual interest
19:10and protected
19:11us.
19:12And it's very
19:12important that
19:13these trade
19:13deals, I
19:14think,
19:14keep the
19:15right balance
19:15between opening
19:16our economies,
19:17diversifying,
19:18promoting growth
19:18and jobs
19:19on both sides,
19:19but also
19:20protecting key
19:21sectors
19:22where you
19:23can put
19:25at risk
19:25some of
19:27your population.
19:27If I look
19:28at the
19:29farmers in
19:30Europe,
19:31sometimes they've
19:32had the
19:33sentiment that
19:34they were
19:34the adjusting
19:35variable of
19:37some of the
19:37trade deals,
19:38that you
19:39would have
19:39trade deals
19:39that would
19:40be beneficial
19:40for industrial
19:41sectors,
19:42but that you
19:42would expose
19:43sometimes to
19:43unfair competition
19:44because it's
19:46not the case
19:46with India,
19:47but in some
19:47trade deals
19:48there's been
19:49the sense
19:49that you
19:50open sectors
19:51to competition
19:51where you
19:52don't have
19:52the same
19:52norms,
19:53the same
19:53standards,
19:53the same
19:54producing
19:55practices,
19:56and thus
19:56you put
19:57your own
19:57sectors at
19:58their
19:58disadvantage.
19:59We have
20:00in Europe,
20:00of course,
20:01very high
20:01standards when
20:02it comes to
20:03use of
20:04pesticides and
20:04norms,
20:05etc.
20:05So I think
20:06this has been
20:07indeed a
20:08sensitive aspect
20:09of that
20:09negotiation,
20:10but as I
20:11said,
20:11I think we've
20:12landed in a
20:13place that's
20:14very positive
20:16and very
20:16beneficial to
20:17both sides.
20:17There might be
20:18disagreements,
20:19but we see
20:20maybe a brighter
20:21future for
20:22countries who
20:23think alike and
20:24want to move
20:25forward.
20:25Thank you so
20:25much.
20:26genius.