Govt should put trade deal on hold: Cong after US’ court strikes down tariffs

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After the US Supreme Court struck down President Donald Trump’s reciprocal tariff policy as unconstitutional, the Congress on Saturday demanded that the India-US interim trade agreement be put on hold immediately.The latest development in the US has placed the India-US trade framework under intense scrutiny, with the Opposition arguing that the legal basis of the tariff regime underpinning the agreement had collapsed.Congress general secretary Jairam Ramesh said since now there was “no clarity”, the agreement should be suspended and renegotiated to protect Indian farmers and industry.Addressing a press conference, Ramesh pointed out that the ‘Framework of Interim Agreement’ itself contains provisions allowing modification if one country alters its terms. With the US court invalidating the tariffs, he said India must exercise that option and revisit the deal.The court, in a 6-3 majority verdict in Learning Resources Inc vs Donald J Trump, held that the President lacked authority under the International Emergency Economic Powers Act (IEEPA), 1977, to impose tariffs.Despite the ruling, Trump indicated that the India-US agreement would continue, prompting the Congress to demand a clear and unambiguous response from the government. Ramesh questioned whether Modi agreed with Trump’s position. He also questioned the urgency with which the agreement was finalised and announced on February 2, citing Trump’s remark that it was done at the request of his “dear friend Prime Minister Modi”. He accused the government of acting in haste despite knowing that the tariffs were under challenge before the US Supreme Court.Linking the timing to domestic politics, Ramesh said the government may have been rattled by Gandhi’s speech in Parliament, where he cited former Army Chief MM Naravane’s remarks on decision-making. “Why couldn’t they wait for a month?” he asked.Meanwhile, Leader of Opposition Rahul Gandhi, in a social media post, said that said Prime Minister Narendra Modi was “compromised” and that his “betrayal” in the trade deal stood exposed.“He can’t renegotiate. He will surrender again,” Gandhi said, as the Congress described the agreement as an “ordeal” imposed on the country.The party flagged “concessions” given to the US agricultural products, warning that tariff reductions or eliminations on items such as cotton, soybean and fruits could threaten the livelihood of lakhs of Indian farmers.Ramesh argued that there was nothing to celebrate in the revised tariff figures, noting that effective duties had risen from 3.5 percent to 10 percent.Congress leader Randeep Singh Surjewala said the deal now stood under a “serious cloud” and questioned whether the government would annul or reconsider it. He detailed how the Supreme Court had set aside presidential tariff powers under IEEPA and raised doubts over alternative routes being explored by the US administration.Surjewala pointed out that the proposed tariffs under Section 122 of the Trade Act, 1974, were temporary, requiring Congressional approval beyond 150 days. He said tariffs under Section 232 of the Trade Expansion Act, 1962, required proof of national security risk, which does not apply to Indian exports.He also said that Section 301 of the Trade Act, 1974, required findings of unfair trade practices, which have not been established against India. “The simple question is whether the government will now protect national interests,” he added.

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