Swadeshi Jagran Manch asks government to enter bilateral rather than multilateral trade agreements

Swadeshi Jagran Manch logo. Photo: swadeshionline.in 

The Swadeshi Jagran Manch (SJM), the Rashtriya Swayamsevak Sangh’s (RSS) frontal organisation on the economy, in a resolution has said the government should enhance its foreign trade with bilateral trade agreements rather than multilateral trade agreements in the wake of U.S. President Donald Trump’s pronouncements on global trade tariffs.

At a meeting of the SJM’s national council held in Raipur on March 9-10, a resolution called on the Union government to prioritise the “national interests of our farmers and small entrepreneurs” while negotiating with the U.S. on trade.

“The U.S., once the biggest supporter of free trade and a rule-based global trading system, has suddenly realised under Donald Trump that for decades it has bought more goods from the rest of the world, than it sold, due to which U.S. has been facing huge trade deficit….now Donald Trump wants to reverse this situation,” the resolution said.

“Donald Trump understood very well that America’s free trade policy is somehow responsible for slowdown in economy and increasing unemployment as it allowed cheap imports from China. To deal with this situation, Donald Trump is imposing reciprocal import duties on many countries, including China, Canada, Mexico, Britain, South Korea and Bharat. Right from its inception, Swadeshi Jagran Manch has been fighting against unequal WTO [World Trade Organization] agreements, adversely impacting our public health, farmers, industry and the common man,” the SJM’s resolution said.

“While making it very clear that SJM is not against promoting international trade, we firmly believe that multilateral trade agreements are not good for the economy, as there is no point giving Most Favoured Nation treatment to all countries. Government of Bharat has also stated that bilateral arrangements are going to be the order of the day as Multilateralism is on its way out. National Council of Swadeshi Jagran Manch strongly suggests that Bharat should enhance its foreign trade with bilateral trade agreements rather than multilateral trade agreements. However, while entering into bilateral trade agreements with U.S. and other countries, national interests should be protected, especially our farmers and small entrepreneurs,” it added.

The resolution lauded the Modi government on its decisions in the past five years to promote the manufacture of goods previously procured from other countries under the ‘Atmanirbhar Bharat’ agenda.

“In the past, we have observed that in the last 10 years, government has been protecting the interests of farmers and their livelihood, while negotiating trade agreements, whether it was a regional trade and investment agreement, [and] RCEP (Regional Comprehensive Economic Partnership) from [which] it withdrew due to concerns of its adverse impact on dairy and agriculture. This policy needs to continue, so far as agriculture small industry is concerned, especially where livelihood of farmers and workers is involved,” the resolution said.

The SJM appreciated the government’s effort to enhance foreign trade in the Indian Rupee. “However, efforts should also be to ensure foreign currency and payment system like SWIFT are not allowed to be used as pressure tactics,” the resolution said.