Relevance: GS II (International Relations & Parliament) | Source: The Hindu / Indian Express
1. The Context: A “Trap Deal”?
The Opposition has strongly protested against a newly signed India-U.S. Trade Deal (under the Trump administration), labeling it a “Trap Deal.”
- The Allegation: Critics argue that the deal was signed under external pressure rather than for mutual economic benefit.
- The Fear: There are concerns that India has compromised on its Agricultural Interests (lowering tariffs on US apples, dairy, and almonds) to appease the “America First” policy, potentially hurting domestic farmers in states like Himachal Pradesh and J&K.
2. The Structural Issue: Bypassing Parliament
A major point of contention is the lack of parliamentary oversight.
- Executive Power: Unlike the USA (where the Senate must ratify treaties), in India, the Union Cabinet (Executive) has the sole power to sign and ratify international treaties.
- Constitutional Gap:
- Article 73: Extends the executive power to all matters where Parliament has the power to make laws (including foreign treaties).
- Article 253: Parliament only steps in if a domestic law needs to be changed to implement the treaty. It does not vote on the treaty itself.
- Result: This allows the government to sign major trade deals without a mandatory debate or vote in the Lok Sabha.
3. Strategic Analysis: Why the Compromise?
While critics call it a surrender, proponents argue such deals are necessary for:
- GSP Restoration: India seeks to restore the Generalized System of Preferences (GSP) status, which allows duty-free export of Indian textiles/gems to the US.
- Service Sector Gains: India often accepts higher imports of US goods (Agriculture) in exchange for easier visa norms (H-1B) for Indian IT professionals.
UPSC Value Box
| Concept / Article | Relevance for Prelims |
| Article 253 | Empowers Parliament to make any law for the whole or any part of India for implementing any treaty, agreement, or convention with any other country. |
| Generalized System of Preferences (GSP) | A U.S. trade program designed to promote economic growth in the developing world by providing preferential duty-free entry for thousands of products. |
| Amber Box (WTO) | Trade-distorting subsidies (like MSP) that are subject to reduction commitments. Developed nations (like the US) often pressure India to cut these subsidies. |
Q. With reference to the power of the Indian Government to enter into international treaties, consider the following statements:
- The Union Executive can enter into and ratify international treaties without the approval of the Parliament.
- The Parliament has the power to make any law for implementing any treaty, even if the subject falls under the State List.
- All international treaties signed by India must be ratified by the President of India after a resolution is passed by the Rajya Sabha.
Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
Correct Answer: (b)
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