Economic Security and Resilience Review
This issue tracks the continuing series of trade restrictive measures announced by the Trump administration during the month. These included a steep hike to USD 100,000 as application fees for H-1B visas for skilled workers, and steadily widening the coverage of products facing higher tariffs on national security grounds. A tariff of 100% was also announced on all patented and branded pharmaceuticals with effect from October 1, but this measure is apparently still under review. Another announcement imposed a 100% tariff on foreign made movies, but has not yet been followed up with an implementing order.
This issue also looks at details of various framework agreements that the US administration had earlier concluded with certain countries, in return for reduced reciprocal and other tariffs. It was the turn of Japan in September to arrive at a more detailed understanding, both on tariff related issues as well as on modalities for the investment commitments that Japan had agreed to make in the US during the next few years. South Korea is reportedly pushing back on the demand that the detailing in its case should follow the model for Japan.
Following the fourth high level dialogue held between the US and China in Madrid held during the month, the two countries arrived at an understanding on the future ownership and operations of the American segment of the Chinese owned app Tik Tok. However, trade and technology restrictions continue to be imposed by both countries against the other.
India’s evolving stance on global trade received focus at the special BRICS summit on Trump tariffs that was held in a virtual format on September 8. Similarly, EAM Dr. S. Jaishankar’s speech at the UN General Assembly drew attention to the issues of non-market practices, market volatility and uncertain market access.
Other India-related developments during the month included revival of negotiations with the US on a bilateral trade agreement (BTA), which had been on pause since August; the thirteenth round of India-EU FTA negotiations; and the third round of India-New Zealand FTA discussions.
The European Commission and the Office of the EU High Representative issued a joint communication on a new EU-India strategic agenda, that will now undergo internal approvals within the EU before being taken up with India for developing joint comprehensive strategic agenda.
India-South West Asia connectivity saw a setback during the month, with the US revoking its sanctions exemption for Chabahar port. A trilateral dialogue was held between India, Iran and Armenia.
Pakistan’s proposals to engage the United States in the critical minerals sector are also outlined in this issue, with the Pak government pushing Pasni, a fishing town in the Baluchistan province, as an opportunity for port development by US investors. This could have implications for overall security and connectivity in an area that already has two other proximate ports, namely the port of Gwadar in Pakistan that is operated by a Chinese company, and the Chabahar port in Iran, parts of which are being developed and operated with Indian investment.
To read this issue of the ESRR, Vol. III, Issue 9, please see the PDF attached
