Industry ready if US trade deal doesnt materialise: CII President
New Delhi [India],: The Indian industry emphasizes that the country’s business sector will not make agreements that endanger national interests, according to the Confederation of Indian Industry President Rajiv Memani, the US is preparing for any conclusion with the proposed bilateral trade agreement.
In an interview with the moment, Memani praised the government’s comprehensive consultation process with the government’s industrial stakeholders before positioning India in trade negotiations.
“The Indian government gave an important time to understand industrial concerns, problems and opportunities. In order to understand how India should be positioned, every sector, every sector has been consulted.” He said.
The President of the CII stressed that there is no obligation to make an agreement at any cost.
“There is no doubt that India will do this agreement only when India’s interest and the interest of America. This agreement will not be until the interests of both countries. There is no coercion on this.”
Memani, who stated that he was ready for both possibilities, summarized the conditions that the industry would support the free trade agreement. “If you ask the industry whether they want this FTA under positive conditions and whether they have received relatively better terms than other countries, then the industry wants this FTA.”
Potential benefits are particularly important for tariff reduction. Memani, “26 percent of the tariff will fall and the industry will operate there. We will remain more competitive than other countries.”
The President of the CII also emphasized the wider strategic messages that a FTA will send: “When the FTA in the two countries is FTA, he also sends a message that both countries are ready to work together.”
Memani acknowledged that if the trade agreement does not realize, some sectors would face difficulties, but emphasized the industry’s commitment to national interests. “It is certain that some sectors and some industries will face difficulties, but the industries do not want to work in a way that damages the country. Industry wants to do so to benefit the country.” He said.
The President of the CII, especially in the automotive sector, has set potential competition difficulties in a specially determined. “If you look at automobile companies, Mexico has a trade agreement with almost 0 percent. If there is 25 percent gap, Mexico becomes the most competitive.”
Memani predicted that Mexico would be the primary benefit if India does not secure positive conditions for Vietnam with some potential gains. “The maximum alternative change will come from Mexico with a possibility of Vietnam,” he said.
The textile and clothing industry may face special difficulties due to Vietnam’s existing advantages. “The clothing industry may be slightly less competitive because 20 percent of Vietnam has a tariff,” Memani emphasized how existing trade relations can affect Indian competitiveness. He said.
Memani warned the trade agreements against waiting for urgent benefits, even if an agreement was made, describing trade agreements as a “long game”. He emphasized that both countries should make adjustments to maximize the benefits.
“Many American companies can also invest in India to export from India. Indian companies will have to focus on competitiveness.”
While the Comments of the President of the CII are ready for alternative scenarios of the industry, the government reflects a mature approach to international trade negotiations, in which the government supports the efforts of the government to secure positive conditions.
“Trade agreements are two -way. Some sectors may face difficulties,” Memani said, accepting the complex nature of international trade agreements and various effects between different sectors of the economy.
This article was created from an automatic news agency feeding without changing the text.
