India Should Open Up Its Market to Attract More FDI

Wendy Cutler, former US trade diplomat, is vice-president, Asia Society Policy Institute, and managing director of its Washington DC office. Cutler, who served as acting deputy US trade representative (USTR) in the Barack Obama administration, in an email interview with Asit Ranjan Mishra says though everyone is concerned about the pervasive uncertainty surrounding President Donald Trump's economic agenda, it is for India to take a call whether to sign a trade deal with the United States (US) or not. Edited excerpts:

- Wendy Cutler, former US trade diplomat, is vice-president, Asia Society Policy Institute, and managing director of its Washington DC office. Cutler, who served as acting deputy US trade representative (USTR) in the Barack Obama administration, in an email interview with Asit Ranjan Mishra says though everyone is concerned about the pervasive uncertainty surrounding President Donald Trump's economic agenda, it is for India to take a call whether to sign a trade deal with the United States (US) or not. Edited excerpts:

Though the 90-day pause on the issue of reciprocal tariffs is drawing to a close, not many countries are engaged with the US on a trade deal. What could be the reasons? Is legal uncertainty about presidential powers on such tariff hikes the only reason?

While many countries are negotiating with the US to avoid high tariffs, only one deal—with the United Kingdom—has been announced thus far. This is not surprising. Trade negotiations involve detailed issues and often take over one year to finish. That said, some partners may be slow walking the talk now, awaiting more legal certainty from US courts.

Now India is the only country seriously engaged with the US for a trade deal. Should India move ahead to conclude an early tranche of the proposed bilateral trade agreement or should it wait for a definitive judgment from the US judicial system on tariffs?