More give than take in secret trade deals

The tight secrecy over trade negotiations means citizens are not privy to the deals that affect them directly

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TRADE NEGOTIATIONS have been likened to a game of poker. Players do not reveal their hand too early because it would give away their game to the opposite side and invite undue pressure from global and domestic lobbies.

As India's trade negotiations with the EU and the UK pick up momentum after being in the doldrums for years, there are plenty of statements from both sides that the talks are going well but all sides are holding their cards close to their chest. Over the past two months, ministers from both sides have been announcing that negotiations are being expedited to the benefit of both sides. Such anodyne statements cover the nitty-gritty of trade talks which are gruelling for developing nations like India that need rich country markets for their products. This turns into an impossible balancing act for Indian negotiators who have to weigh the benefits of giveaways in terms of a concession that would hurt their domestic industries and their citizens.

This exercise becomes more complex in the case of free trade agreements (FTAS) which are more comprehensive, covering investments too. Rich nations use FTAS to seek more concessions from developing countries, especially on intellectual property rights (IPRS) that are required by the World Trade Organization. The bigger headache for New Delhi right now is Brussels, since the European Commission has recently notified its Carbon Border Adjustment Mechanism or CBAM, a measure that will affect a range of India's metal exports to the EU, starting October this year. More products will be affected down the line.