US Lawmakers Push to Eliminate India's 11% Cotton Tariff in Trade Deal

House Budget Chairman Jodey Arrington led the letter to US Trade Representative Jamieson Greer, saying the ongoing talks present a major opening for American agriculture.

"As you finalize the details of this Interim Agreement and any subsequent agreements with India, we urge you to negotiate a permanent reduction or elimination of India's trade barriers to American cotton exports," the lawmakers wrote. "This is a critical moment for American cotton farmers."

The letter, dated February 25 and released on Monday, highlights that India maintains an 11 per cent tariff on raw cotton imports, which lawmakers describe as a significant barrier for US producers.

The lawmakers noted that the US cotton industry exports 85 per cent of its production and that India is currently the fourth largest global textile exporter. They said temporary suspensions of India's import duties in the past have been "short-lived and do not represent reliable market access".

"Increasing market access to one of the world's largest economies would provide a much-needed market-driven boost to our cotton farmers who have suffered several years of historic losses resulting from inflation, low demand, and inclement weather," the letter said.

The lawmakers added that increased US exports to India would be "mutually beneficial by helping support India's growing textile industry with reliable and high-quality US inputs".

They also thanked Greer for his "successful efforts to negotiate new trade agreements that reduce foreign barriers to American agricultural exports" and said recent deals had been "critical to boosting demand for US commodities".

The appeal comes as Washington and New Delhi work through the framework of a recently announced Interim Agreement. Lawmakers described the joint statement outlining the deal as providing "monumental opportunities for American agriculture".

Industry groups swiftly backed the congressional push.

"The American Cotton Shippers Association (ACSA) strongly supports Chairman Arrington's leadership in urging USTR to eliminate India's 11 per cent tariff on US cotton, which impedes access for US cotton into this critical market," said Buddy Allen, President & CEO of the American Cotton Shippers Association.

"ACSA appreciates USTR's continued efforts to expand market access for our industry and looks forward to working together to strengthen the US cotton industry at this critical time," he added.

Gary Adams, President and CEO of the National Cotton Council, said: "At a time when producers are facing enormous financial strains, expanded export opportunities are more important than ever."

"The National Cotton Council welcomes this congressional effort to ensure that continued trade negotiations with India result in real and lasting gains for American cotton," he said.

Congressmen who signed the letter are Gregory F. Murphy, Rick Crawford, Austin Scott, Pat Harrigan, Michael McCaul, Michael Cloud, Earl L. "Buddy" Carter, Julia Letlow, Ronny Jackson, Vince Fong and August Pfluger.

- IANS