India should exercise caution while negotiating the proposed bilateral trade agreement with the US, as the lack of Fast Track Trade Authority in America leaves any deal open to Congressional modifications, the economic think tank Global Trade Research Initiative (GTRI) warned on Tuesday. GTRI also highlighted that the US certification process enables Washington to effectively renegotiate agreements after they are signed, demanding legal, regulatory, and policy changes that could undermine India's sovereignty.

"As discussions progress, navigating forward requires not only diplomatic expertise but also vigilance against legal imbalances embedded in the US trade framework," said GTRI Founder Ajay Srivastava. He explained that without Fast Track Authority and with the US’s precedent of post-agreement certification allowing additional demands, India faces the real risk of asymmetric obligations.

The Fast Track Trade Authority (also called Trade Promotion Authority) allows the US President to negotiate trade deals and present them to Congress for a direct vote without amendments or delays. This mechanism has historically helped finalize major free trade agreements (FTAs), such as NAFTA. However, since 2021, this authority has lapsed and remains unrenewed. Without it, any trade deal negotiated by the US President is subject to Congressional review, possible amendments, delays, or even rejection, Srivastava noted.

Adding to India’s concerns, the US employs a post-FTA certification process, where it unilaterally decides whether a partner country has met its commitments. The agreement does not take effect until the US issues this certification, which has historically been used to push countries into making additional legal and policy changes beyond the original FTA terms.

"These factors create significant uncertainty, allowing the US to modify the deal later or impose extra conditions. India must tread carefully in its FTA negotiations with the US, as the absence of Fast Track Authority exposes any agreement to unpredictable legislative interventions," Srivastava cautioned. As US President Donald Trump prepares to impose reciprocal tariffs on April 2, Indian and American officials are set to begin formal negotiations on the proposed trade deal on Wednesday.

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