India Advised to Exercise Caution in Finalizing Fair and Clean Economy Agreements

2023-11-18 20:05:57.139000

India has been advised to exercise caution while finalizing the text of fair and clean economy agreements under the Indo-Pacific Economic Framework for Prosperity (IPEF). A report by the Global Trade Research Initiative (GTRI) suggests that India should ensure that the agreements do not overly restrict its policy space or tax revenue generation abilities. The report highlights several critical issues that India should consider, including not agreeing to a non-derogation clause that would prevent the relaxation of existing domestic rules for projects of national importance. It also advises against agreeing to minimum standards on clean energy products/technologies for domestic markets and stopping preferential treatment to domestic suppliers in government procurement of goods. The report emphasizes the importance of settling issues at the domestic level before taking on international obligations and retaining regulatory autonomy. It also cautions against agreeing to reiterate International Labour Organisation (ILO) conventions under the IPEF. India should be cautious while finalizing the clean and fair economy agreements of the Indo-Pacific Economic Framework for Prosperity (IPEF) to ensure that new commitments do not overly restrict its policy space or tax revenue generation abilities, according to a report by the Global Trade Research Initiative (GTRI). The report suggests that India should keep critical issues in mind while finalizing the agreements, such as not agreeing to a non-derogation clause, minimum standards on clean energy products/technologies for domestic markets, and stopping preferential treatment to domestic suppliers in government procurement. The report also advises against allowing the import of genetically modified (GM) seeds and foods in the name of food security. The GTRI emphasizes the need to settle these issues at the domestic level before taking on international obligations.

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