The Organization for Cooperation and Economic Development (OECD) announced Tuesday, June 3 that global economic growth had slowed down more than expected A few months earlier, after the pricing announcements of the American president Trump.
In its latest economic perspectives, the OECD estimates that the global economy will slow down from 3.3% in 2024 to 2.9% in 2025 and 2026. It had previously planned growth of 3.1% for 2025 and 3% for 2026. The organization also warned against the rise in protectionist trends in the world, which could add pressure on inflation, as well as the overall growth of the uncertainty commercial barriers.
The OECD provides that India will experience “strong and largely stable” economic growth, with real GDP estimated at 6.3% during the 2010 financial year and 6.4% during the 2010 financial year. Depending on the organization, the prospect of benign inflation, tax cuts and a stronger labor market will help stimulate private consumption, while the reduction in interest rates and the increase in public capital expenses will contribute Stimulate investment. However, American rates would cost Indian exports dearly.
The United States rejects the challenge of metal rates from India to the WTO
The Indian Express reported Tuesday that the The United States has rejected India’s opinion To the World Trade Organization (WTO) offering a reprisals against the United States for the prices of article 232 on imported steel and aluminum.
On May 9, India submitted a document to the WTO, identifying the prices of American metals, from March 12, as “safeguard measures”. The WTO agreement on guarantees (AOS) identifies guarantees as protectionist measures that a member country may invoke whether it determines that certain imports of products are significantly important and can “cause or threaten to cause serious injuries” to the corresponding domestic competitor.
According to India’s note, prices have an impact on $ 7.6 billion in Indian exports to the United States, on which $ 1.91 billion is perceived as rights. The reprisal measure proposed by India would result in an equivalent quantity of rights obtained from the products from the United States, “he said. Specific American products have not been specified.
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In its response to the WTO on May 23, the United States said that the assertion of India according to which the prices are `safeguard measures ” was incorrect, that the tariffs of article 232 were imposed for reasons of national security and even said that India had not followed the procedure due to request negotiations on the subject.
India-Us closer to the commercial agreement: LUTNICK
This development comes in the middle of the remarks of the US Secretary of Trade Howard Lutnick on Monday, expressing optimism as to an American trade agreement. He said that commercial negotiators have “found a place that really works for both countries”.
“You should expect an agreement between the United States and India in the not too far future,” he said at the leadership summit of the American strategic partnership forum in Washington.
We previously explained how India will be affected by Trump’s prices: the United States is the largest trading partner in India, while India is the 10th American trading partner. The United States has maintained a trade deficit of $ 45.7 billion with India in 2024, up 5.4% compared to 2023, according to the office of the United States Commercial Representative (USTR).
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India is currently facing 26% of “reciprocal prices” under the International Economic Powers (1977). The United States subsequently interrupted all reciprocal prices on April 9, while a legal battle on the validity of these prices (as well as the reference rate of 10% invoiced on all countries) is currently underway.
The White House has justified this rate, claiming that India has a price of 70% on imports of passenger vehicles, 10-20% on networking switches and routers and 50% on rice in the ball.
India also faces 25% tasks of article 232 on steel, aluminum and cars, which will be doubled at 50% compared to Wednesday, June 4. We have previously noted that the United States is the The largest Indian aluminum marketWith exports worth $ 946 million during the 2010s. These exports had exceeded $ 1 billion in the previous two years and were up only $ 350 million in 2016-2017 when Trump became president. Likewise, the United States was also the largest market for Indian iron and steel articles, with Indian exports worth 2.8 billion dollars in 20124.
Lutnick also said that India could benefit from one of the first countries to seek a trade agreement with the United States. “Previous countries get a better deal, that’s how it is,” he said. “So those who come from July 4 to July 9, there will just be a battery.” The 90 -day price break expires in July and India pushes to conclude the trade agreement before the end date.
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While India has tried to appease the United States, the reduction of tasks on American imports like Bourbon whiskey And the Harley-Davidson motorcycles, he also expressed his dissatisfaction with the statement of Trump that he helped negotiate a ceasefire between India and Pakistan last month.
India-Eu Trade Deal halfway: FT report
Financial time Tuesday, June 3, India and the European Union had reached a consensus out of approximately eight out of approximately 20 subjects which will be covered by a potential trade agreement. This follows the meeting of the Indian Minister of Commerce Piyush Goyal with the EU trade commissioner, Maroš Šefčovič in Paris on Monday.
India and the EU seek to finalize the trade agreement this year, rely on a commitment by Prime Minister Narendra Modi and the president of the European Commission Ursula von der Leyen in February of this year.
The subjects include subjects such as rules of origin and intellectual property rights, but will not address “sensitive” agricultural products such as dairy products, FT reported.
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The announcement is important, both India and the EU by asking for relief of Trump’s prices.
According to the European Commission, the EU is the second trading partner in India, representing the trade in goods worth 120 billion euros (around 137 billion dollars) in 2024, or 11.5% of the total trade in India. India, on the other hand, is the 9th EU trade partner, representing 2.4% of the total EU goods trade in 2024.
The trade in goods between the EU and India has increased 90% over the past decade, the main Indian exports being machines and household appliances, transport equipment and chemicals.
The trade in services between the two in 2023 was 59.7 billion euros (around $ 68 billion), the EU accumulating a deficit of 7.9 billion euros ($ 9 billion).
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