India's Foreign Minister Stands Firm: This Is Not Something We Can Compromise On
On August 23 local time, Indian Foreign Minister S. Jaishankar again used strong words to respond to the U.S. tariffs on Indian goods at a forum organized by India's Economic Times, stating that India-U.S. trade negotiations are still ongoing, but there are clear "red lines" in the negotiations, and India will always make decisions based on national interests.
"Negotiations are still ongoing, but most importantly, we have some red lines," Jaishankar emphasized. He stated that the interests of farmers and small producers are the bottom line in India-U.S. negotiations, "We are committed to defending the interests of our farmers and small producers, and we are very firm about it. This is not something we can compromise on."
The Economic Times noted that Jaishankar's remarks show India's determination to protect domestic interests while engaging with global partners.
Reuters from the UK pointed out that earlier this year, India did not agree to open its vast agricultural and dairy market, leading to the collapse of India-U.S. trade negotiations. After the U.S. announced tariffs of up to 50% on Indian goods, citing India's purchase of Russian oil, tensions between the two countries escalated.
Of the 50% tariffs imposed by the U.S. on India, 25% have already taken effect, with the remaining part expected to be implemented starting August 27. Analysts at Capital Economics, a British economic research institution, warned on the 22nd that if the full tariffs are implemented, India's economic growth would decline by 0.8 percentage points each in 2023 and 2024. "Long-term harm could be greater, as high tariffs may weaken India's appeal as a new global manufacturing hub."
The original plan for the U.S. trade delegation to visit India from the 25th to the 29th has been canceled, making the prospects for negotiations bleak. The hope of the U.S. to reduce or delay the tariffs on India is becoming increasingly remote.
Regarding the main point of contention, where the U.S. criticized India for buying Russian oil and reselling refined products for profit, Jaishankar had previously expressed his confusion over the additional 25% tariffs imposed by the U.S., saying that initially, "it was the Americans who urged India to do everything possible to stabilize the global energy market, such as purchasing Russian oil."
On the 23rd, Jaishankar again criticized the tariff as "unfair and unreasonable," stating that it was wrongly "packaged as an oil issue," because the same argument was not applied to Europe, the largest importer of Russian liquefied natural gas.
He pointed out that Western positions on this issue are "inconsistent." In terms of trade volume, Russian-EU trade far exceeds India-Russia, "Some say we are funding the Ukraine conflict... Russian-EU trade is larger, so isn't Europe contributing more?"
Jaishankar also sarcastically remarked, "It's interesting that a government that claims to be pro-business criticizes others for doing business. If you think buying our oil or refined products is problematic, don't buy them. No one is forcing you to buy. But Europe buys, and the U.S. buys. So if you don't like it, don't buy from us."
Regarding India-Pakistan relations, Jaishankar reiterated India's position, "For over 50 years since the 1970s, there has been a consensus within India that we do not accept any mediation on India-Pakistan relations."
Jaishankar emphasized, "Whether it's trade, farmers' interests, or our strategic autonomy and opposition to mediation, the Indian government's stance is clear. If someone disagrees, please tell the Indian people: You are not prepared to defend the interests of farmers, you do not value strategic autonomy. But we will protect it and take all measures to ensure it."
The mediation mentioned by Jaishankar is another new rift in India-U.S. relations. After the conflict between India and Pakistan in May, Trump announced that India and Pakistan had agreed to a "comprehensive and immediate ceasefire" under U.S. mediation. Although Pakistan thanked Trump for helping end the conflict, India only acknowledged that the U.S. played a certain role in the mediation, insisting that it was India itself that ended the conflict through direct negotiations with Pakistan.
"We have never seen a U.S. president handling foreign affairs in such an open way," Jaishankar said. Whether dealing with foreign affairs or domestic affairs, Trump's approach differs from traditional models.
Regarding the India-U.S. bilateral relationship and multilateral cooperation under Trump, Jaishankar emphasized that India will not be forced to choose between different groups, but rather adapt to the nature of the environment and challenges. "If a relationship requires a different approach, adjust accordingly," he said. "The Quad is the Quad, and BRICS is BRICS. Countries like us should not be forced into binary choices."
Jaishankar visited Russia from the 20th to the 21st, meeting with Russian Foreign Minister Sergey Lavrov to discuss bilateral trade, economic cooperation, and international issues. Analysts suggest that this indicates India will not interrupt its economic ties with Russia.
Liu Zongyi, director of the South Asia Research Center at the Shanghai Institute of International Problems and a researcher, previously analyzed for Observer that over the past few decades, India's economy has been most affected by two factors: monsoons, and if the monsoon rains are abnormal, agricultural shortages lead to inflation in India; and energy, as international oil prices rise, domestic prices soar, and the economy is severely affected. India has yet to escape this situation.
Liu pointed out that in recent years, Indians have boasted about their country's good economy, but in reality, India's economic growth rate was higher in 2021 and 2022 due to the resurgence of the pandemic, cheap oil trade with Russia, and Modi's government's deficit spending on large-scale infrastructure investments, which made the economic data look impressive in recent years.
Therefore, Liu believes that the Modi government finds it difficult to make concessions on agricultural and energy issues to the U.S. and is unwilling to fully compromise.
Original: www.toutiao.com/article/1841317380667396/
Statement: This article represents the views of the author.