Congress questions Centre over US trade deal, cites Malaysia example

The Congress on Tuesday criticised the government’s handling of the proposed trade agreement with the United States, questioning why India was not as “proactive” as Malaysia in deciding its position and alleging a lack of clarity on the deal’s status.

Congress leader Pawan Khera said Malaysia had declared its trade agreement with the US “null and void” and asked why India had not taken a similarly decisive stand.

“India does not even have a fully signed deal with the US like Malaysia. Yet the government has offered no clarity on the fate of this trade deal,” Khera said.

He alleged that the government was relying on “anonymous sources” instead of providing official details on negotiations.

Khera also referred to two Section 301 investigations initiated by the United States, reportedly concerning issues related to forced labour-linked imports and industrial capacity.

He criticised Prime Minister Narendra Modi and Commerce Minister Piyush Goyal, alleging that they were not taking a firm position in negotiations with Washington.

Government indicates ongoing negotiations

The remarks came a day after a senior government official said that an interim trade agreement between India and the United States would be signed once the new tariff framework in the US is finalised.

“Each country is doing a deal as part of a package where one is at comparative advantage vis-à-vis competitors,” the official said.

India and the US had last month announced the finalisation of a framework for the first phase of a bilateral trade agreement.

According to the framework, the US had agreed to reduce tariffs on certain Indian goods to around 18 per cent, officials said.

However, the US tariff structure has undergone changes following a Supreme Court ruling affecting earlier tariff measures, which has impacted the timeline of negotiations.

India and the United States have been engaged in talks to expand bilateral trade ties through a phased agreement covering tariffs, market access and regulatory issues.

The proposed deal is seen as significant for sectors such as manufacturing and exports, with both sides seeking to address trade imbalances and improve market access.

The Congress has repeatedly sought greater transparency from the government on the negotiations, while the Centre has maintained that discussions are ongoing and subject to evolving global trade conditions.