WASHINGTON, DC / ACCESS Newswire / August 1, 2025 / The Middle East Media Research Institute (MEMRI) has published a new report: "What Washington Can Learn From The India-UK Free Trade Agreement." As the United States implements new tariffs on India, including a 25% levy effective August 7, the recently concluded Free Trade Agreement (FTA) between India and the United Kingdom stands as a stark example of successful diplomatic and economic engagement, offering valuable insights for the perpetually stalled trade negotiations between India and the US.

The India-UK FTA, signed in July 2025 after three years of complex but ultimately fruitful discussions, is more than a trade pact; it's a testament to mutual understanding, strategic alignment, and a shared vision for inclusive growth. The agreement provides zero-duty access for 99% of Indian exports, streamlines professional mobility, and addresses social security contributions, aiming to double bilateral trade to USD 120 billion by 2030.

In sharp contrast, trade negotiations between India and the US remain ensnared in fundamental disagreements. While issues such as agricultural subsidies, digital trade, and Special and Differential Treatment at the WTO are long-standing, the core problem lies in a persistent perception gap. The US often views India's policies, like MSP-based procurement and digital sovereignty measures, as protectionist, while India sees them as essential for social equity and economic resilience in a country where MSMEs form the backbone of employment and agriculture remains vulnerable.

The US administration, in its pursuit of reciprocal concessions, often overlooks India's structural realities. It perceives India's rise as a zero-sum game, fearing that every gain for India comes at the expense of American manufacturing. This mindset not only stifles progress but risks alienating a partner whose strategic alignment with the US is otherwise robust.

The divergence in perception has created a negotiation environment fraught with suspicion and rigidity. The US views India's economic rise as a signal that it should relinquish its developmental privileges, while India sees itself as a developing economy with legitimate needs for policy space and protective measures.

The success of the India-UK FTA offers a crucial blueprint. Britain engaged with India on equal terms, acknowledging its sensitivities and aspirations. The US has a critical opportunity to reframe its engagement with India, moving beyond a transactional lens to embrace a more nuanced, empathetic posture. Recognizing India's developmental safeguards not as obstructionism but as principled stands rooted in lived realities is paramount.

"Trade, at its best, is not a contest of concessions but a choreography of shared growth," the MEMRI analyst concluded. The India-US negotiations, if they are to succeed, must rediscover this spirit. The US must move beyond the arithmetic of tariffs and embrace the algebra of trust to become a beacon of 21st-century economic diplomacy.

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SOURCE: Middle East Media Research Institute