Synopsis
Mark Mobius highlights the potential benefits of a US-India trade agreement, emphasizing the friendly ties between PM Modi and President Trump amidst global trade discussions.Key Takeaways
- Mark Mobius advocates for a free trade agreement between India and the US.
- PM Modi and Trump have a cordial relationship.
- Trade agreements are expected to stabilize global markets.
- India should remove non-tariff barriers to facilitate trade.
- The US seeks reciprocity in trade relations globally.
New Delhi, April 16 (NationPress) As discussions escalate regarding the future of the global trade landscape, renowned investor Mark Mobius stated on Wednesday that a free bilateral trade agreement with the United States would undoubtedly be advantageous for India. He emphasized that Prime Minister Narendra Modi and US President Donald Trump maintain a friendly rapport.
The billionaire investor, who heads the Mobius EM Opportunities Fund focusing on emerging markets (EMs), conveyed to IANS that while the global economy may face challenges, Trump is expected to commence signing trade agreements with various nations in the coming months. “This will soothe the markets and reduce the likelihood of a significant downturn,” he remarked.
Mobius pointed out that India is currently dealing with several non-tariff barriers, including the quality control inspection agency.
“It is crucial for India to remove these barriers and establish a free trade agreement with the US,” he suggested.
The governments of New Delhi and Washington are striving to finalize the initial phase of a Bilateral Trade Agreement (BTA) aimed at reducing tariffs ahead of the target deadline of autumn 2025, with the terms of reference already established.
If completed within the set timeline, both countries stand to gain from this trade agreement.
Mobius advocated for an entirely free trade environment, noting, however, that many nations, especially China, are reluctant to adhere to World Trade Organization (WTO) regulations and practice reciprocity.
“The US is pursuing reciprocity from countries globally to rectify trade imbalances and bolster manufacturing in all nations,” he added.
Currently, China faces tariffs of up to 245 percent on US imports due to its retaliatory measures, as outlined in the White House fact sheet. This situation arose after Beijing instructed its airlines to halt further deliveries of Boeing jets in retaliation for the US's initial imposition of 145 percent tariffs on Chinese products.
The White House has indicated that the US President is willing to negotiate a trade deal with China, contingent upon Beijing taking the first step.
