Indian unions and farmers stage a nationwide strike over interim trade deal with US
NEW DELHI (AP) — A coalition of major trade unions and farmers’ groups in India mounted a nationwide strike Thursday to protest an interim trade deal with the United States, saying the agreement undermines the interests of farmers, small businesses and workers.
In Parliament, lawmakers from opposition political parties demanded that the government scrap the trade deal and criticized Prime Minister Narendra Modi with the slogan “Narendra Modi, surrender Modi.”
The one-day strike partially disrupted public services and manufacturing activities, highlighting resistance to the reform agenda set by Modi, leader of the ruling Bharatiya Janata Party, and underscoring the political risks of pushing market-oriented policies ahead of key state elections later this year.
A union leader said the trade deal with Washington opens the Indian market to subsidized agricultural products, threatening the livelihoods of millions of small farmers.
“Cheap American farm produce will be dumped in India, making it difficult for our farmers and small businesses to compete,” said Amarjeet Kaur, general secretary of All India Trade Union Congress, a prominent union that took part in the strike.
The government in New Delhi has defended the interim trade pact as a step toward expanding exports, attracting investments and strengthening strategic ties with the U.S. The interests of farmers in the agriculture and dairy sectors were protected, Indian Trade Minister Piyush Goyal said recently.
India and the U.S. this month announced they were moving closer to a formal trade pact, releasing an interim framework that would lower tariffs and deepen economic ties.
A fact sheet issued by the White House shows reciprocal tariff on Indian goods decreasing from 25% to 18%, while an additional 25% penalty tariff for India’s purchase of Russian oil will be dropped.
In return, India will stop buying Russian oil and purchase $500 billion worth of U.S. goods, including energy, while cutting taxes and non-tariff barriers.
The protesters in India also opposed Modi’s efforts to privatize state-run companies and implement new labor codes, calling the sweeping changes “deceptive fraud” against workers.
Indian officials have argued that labor reforms were needed to boost efficiency and create jobs in the long run.