US certification process, absence of FTTA in trade talks raises concerns

Chennai: As the US trade team arrives in India for bilateral agreement talks, the absence of Fast Track Trade Authority (FTTA) and the country’s one-sided certification process has made Indian industry doubtful about the outcomes.

Fast Track Trade Authority is a special power that the US Congress gives to the President to help speed up and simplify trade negotiations with other countries. The trade team visiting India currently lacks Fast Track Trade Authority (FTTA).

FTTA helps the President to present the agreement to Congress for an up-or-down vote, without amendments or procedural delays. FTTA has historically played a key role in finalizing and approving FTAs such as NAFTA, CAFTA, and the WTO’s Uruguay Round.

However, since 2021, the FTTA has lapsed and has not been renewed. Without this authority, any trade agreement negotiated by the US President is exposed to Congressional scrutiny, possible amendments, delays, or outright rejection. This creates significant uncertainty for negotiating partners like India, finds GTRI.

Further, the US's post-FTA certification mechanism, a practice in which the US unilaterally determines whether a partner country has fulfilled its obligations under the agreement, is another concern.

“After signing an FTA, the US does not allow it to enter into force until it unilaterally certifies that the partner country has changed its domestic laws and policies to comply with US interpretations of the agreement. Certification happens after an FTA is approved. While India cannot do the same, it gives the US extra leverage after negotiations, effectively renegotiating terms already agreed upon,” said Ajay Srivastava, founder of GTRI.

The US often demands that partner countries amend or adopt new laws, regulations, executive decrees, or administrative procedures to reflect Washington’s interpretation of the agreement, regardless of whether such changes were negotiated or written down.