New Delhi: As the debate intensifies over the future of the world trade order, ace global investor Mark Mobius on Wednesday said a free bilateral trade agreement with the US would surely benefit India, adding that Prime Minister Narendra Modi and US President Donald Trump do share a cordial relationship.
The billionaire investor, who runs the Mobius EM Opportunities Fund for emerging markets (EMs), told IANS that the world economy will experience some distress but within the next few months, Trump will start signing trade agreements with a number of countries and "that will calm the markets and obviate the possibility of a major slowdown".
According to Mobius, India has a number of non-tariff barriers, like the quality control inspection agency.
“It would be best if India eliminated all those barriers and made a free trade agreement with the US,” he observed.
New Delhi and Washington are working to sign the first tranche of a Bilateral Trade Agreement (BTA) to bring down tariffs before the agreed timeline of the fall of 2025, and the terms of reference for the pact have already been finalised.
Both nations would benefit if the trade deal is wrapped up within the timeframe.
According to Mobius, a completely free trade environment would be best, but most countries, particularly China, are not willing to follow World Trade Organisation (WTO) rules and adhere to reciprocity.
“The US is seeking reciprocity from nations around the world so the trade imbalances are remedied and manufacturing can be encouraged in all countries,” he noted.
China now faces up to 245 per cent tariffs on imports to the US as a result of its retaliatory tariffs, according to the White House Fact sheet. This came after Beijing ordered its airlines not to take any further deliveries of Boeing jets in response to the earlier US decision to impose 145 per cent tariffs on Chinese goods.
According to the White House, the US President is open to making a trade deal with China, but Beijing should make the first move.
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