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India Protects Farmers in US Trade Deal, Gains Market Access in Key Sectors

India has secured protections for its sensitive agriculture and dairy sectors in an interim trade agreement with the United States. The deal will see the US cut tariffs on a range of Indian goods, providing new market opportunities in textiles, leather, and machinery. Both nations commit to addressing non-tariff barriers and establishing rules of origin to ensure mutual benefit. The agreement also includes exemptions for Indian aircraft parts and gains in pharmaceuticals.

Key Points: India-US Trade Deal Safeguards Agriculture, Boosts Exports

  • Farm and dairy sensitivities protected
  • US to slash tariffs on Indian goods
  • Market access in textiles and machinery
  • Rules of origin to benefit both nations
  • Non-tariff barriers to be addressed
2 min read

India safeguards agriculture sector, boosts farmer incomes in US deal: FM Sitharaman

India secures protections for farmers and dairy in interim US trade pact, gaining tariff cuts and market access for textiles, leather, and machinery.

"The framework protects key farm and dairy products, spices, and staples, strengthening farmer incomes. - Nirmala Sitharaman"

New Delhi, Feb 7

India has safeguarded the sensitivities of its agriculture and animal husbandry sectors in the interim US trade deal, Finance Minister Nirmala Sitharaman said on Saturday.

As part of the interim trade deal framework, the US will slash reciprocal tariffs on Indian goods to 18 per cent, providing a huge market opportunity in key sectors such as textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home decor, artisanal products, and select machinery in the world's largest economy.

"The framework protects key farm and dairy products, spices, and staples, strengthening farmer incomes," said FM Sitharaman.

The Agreement reflects India's commitment to safeguarding farmers' interests and sustaining rural livelihoods by completely protecting sensitive agricultural and dairy products, including maize, wheat, rice, soya, poultry, milk, cheese, ethanol(fuel), tobacco, certain vegetables, meat, etc.

The United States and India commit to provide each other preferential market access in sectors of respective interest on a sustained basis.

The United States and India will also establish rules of origin that ensure that the benefits of the Agreement accrue predominately to the United States and India., according to a White House statement.

"The United States and India will address non-tariff barriers that affect bilateral trade. Recognising the importance of working together to resolve long-standing concerns, India also agrees to address long-standing non-tariff barriers to the trade in U.S. food and agricultural products," said the statement.

The White House further stated that they will work towards further expanding market access opportunities through the negotiations of the BTA. The United States affirms that it intends to take into consideration, during the negotiations of the BTA, India's request that the United States continue to work to lower tariffs on Indian goods.

India will also get exemptions under section 232 on aircraft parts, tariff rate quota on auto parts and negotiated outcomes on generic pharmaceuticals, leading to tangible export gains in these sectors.

- IANS

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Reader Comments

S
Sarah B
As someone who follows trade closely, the rules of origin clause is crucial. It ensures the benefits stay within the two countries and don't get diverted. The aircraft parts exemption is a smart move for our aviation industry.
P
Priya S
Finally some good news for our artisans and home decor sector! Access to the US market can be a game-changer for so many small businesses and craftspeople in rural India. Hope the implementation is smooth.
R
Rohit P
Protecting dairy is absolutely vital. Our milk farmers have enough challenges. Let's see how the "non-tariff barriers" part plays out. Sometimes these technical rules can be more restrictive than tariffs themselves. Cautiously optimistic.
M
Michael C
The focus on generic pharmaceuticals is a positive step. Affordable medicine is a global issue, and India's role as the pharmacy of the world should be supported, not hindered, by trade agreements.
K
Kavya N
While the protection for farmers is commendable, I hope the government ensures that the benefits of increased exports in textiles and other sectors actually reach the workers on the ground. We need strong labor and welfare policies alongside such deals.
V
Vikram M
Good strategic move. Balancing protection for our agri-sector with market access in manufacturing. The auto parts quota and

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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