From Trump to Biden, adoption of industrial policy reflects deeper structural shifts in US, says Jaishankar
EAM S Jaishankar explains why US industrial policy is a permanent structural change, persisting from Trump to Biden, amid India-US trade talks.
External Affairs Minister S Jaishankar has warned that the recent shifts in American economic strategy are not merely temporary political whims but represent deep-seated structural changes within the United States.
Speaking at the Munich Leaders Meeting, the Minister highlighted that the move toward state-backed industrial policy—a concept Americans were historically uncomfortable with—has become a bipartisan staple in Washington, surviving the transition from the Trump administration to the Biden administration.
A Permanent Strategic Realignment
Jaishankar emphasized that global powers must distinguish between mere administrative behaviors and fundamental systemic trends. He noted that while some policies might seem limited to a specific leader, the core trajectory of Washington is moving toward a more interventionist economic model.
"Many policies which President Trump initiated in his first administration continued under Biden," Jaishankar observed. "The very idea of the United States having an industrial policy... actually persisted under Biden."
The Minister's remarks suggest that the global community must adapt to these long-term strategic shifts rather than waiting for a change in the White House to reset the status quo.
India-US Trade Deal Nears Final Stretch
These observations come at a critical juncture for India-US relations, as negotiations for a bilateral trade agreement enter what US Trade Representative Jamieson Greer described as the "short strokes"—the final phase of the process.
Greer confirmed that while a final announcement is not imminent, the core sticking points have been identified and both nations are working diligently to resolve them. He also noted a "very constructive call" between Prime Minister Narendra Modi and US President Donald Trump, suggesting that the leaders may speak again soon to assess progress.
Key Developments in Trade Negotiations:
- High-Level Meetings: Commerce and Industry Minister Piyush Goyal held productive discussions with USTR Greer on the sidelines of the G20 Trade Ministers' Meeting in Milwaukee.
- Scope of Cooperation: Recent leadership discussions have covered vital sectors including trade, defence, energy, and critical technologies.
- Interim Agreement: The goal remains to finalize a mutually beneficial interim agreement in line with previous joint statements.
- Negotiation Hurdles: While a framework was established in February, shifts in the US tariff landscape have extended the timeline for a final deal.
Minister Goyal, sharing updates via X, expressed optimism regarding the early conclusion of an interim agreement. As staff from both nations continue to meet, the focus remains on securing a balanced deal that reflects the evolving economic realities of both New Delhi and Washington.