New Delhi [India], July 27 (ANI): Citing misunderstandings surrounding recent US trade agreements with Vietnam and Japan, the Global Trade Research Initiative (GTRI), a prominent think tank, has urged India to proceed cautiously as it negotiates its own trade deal with the United States.
In a report released on Sunday, GTRI recommended that India learn from the experiences of countries like Vietnam and Japan, and insist on a jointly issued, written statement before publicly acknowledging any trade agreement with the US.
“There appear to be contradictions in the interpretation of recently concluded trade deals between the US and Vietnam, as well as the US and Japan,” the report stated.
Referring to a Japanese government document released on July 25, GTRI highlighted stark differences between Japan’s understanding of its new trade deal with the US and how former President Donald Trump portrayed it.
“To avoid similar misrepresentation, India must insist on a jointly issued, written statement before acknowledging any agreement,” the GTRI report recommended.
On July 22, Trump claimed that the agreement with Japan secured massive investments, strong tariff protections, and guaranteed access for U.S. agricultural exports—including rice. However, Japan’s official summary, released by its Cabinet Secretariat, painted a far more limited picture—describing the deal as still under negotiation and lacking binding commitments.
Trump had asserted that Japan would invest USD 550 billion in the US, with 90 percent of the profits remaining in America. However, Japan’s version stated that this figure includes a mix of equity, loans, and guarantees from state-backed institutions—not a lump-sum investment.
Trump also announced that Japan would significantly open its markets to U.S. agricultural products, including rice. But according to the Japanese document cited by GTRI, this opening is confined to existing Minimum Access (MA) quotas and is conditional—subject to domestic demand and supply. In essence, Japan retains the discretion to limit U.S. rice imports when domestic need is absent.
GTRI also noted another area of divergence regarding automotive exports. While Trump claimed that Japan would remove additional safety testing for U.S.-made vehicles, Japan’s document clarified that it would allow such imports only if the vehicles meet Japanese road safety standards.
“In other words, this is not a blanket exemption—U.S. manufacturers must still comply with Japanese technical norms,” GTRI concluded.
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