By Shailesh Yadav, New Delhi, June 30
India has adopted a firmer stance on agricultural matters as high-stakes trade negotiations with the United States reach a pivotal moment, government sources said on Monday.
The Indian delegation, led by Chief Negotiator Rajesh Agrawal, has extended its stay in Washington, as reported by ANI earlier. The two negotiations were scheduled on Thursday and Friday, but have been extended as both nations work urgently to finalise an interim trade agreement before a crucial July 9 deadline.
The extended negotiations come as both countries face the looming return of suspended 26% reciprocal tariffs. These punitive measures, imposed initially during the Trump administration on April 2, were temporarily suspended for 90 days but will automatically resume if no agreement is reached.
"The failure of these trade discussions would trigger the immediate reimplementation of the 26% tariff structure," warned a senior official.
India's hardened position reflects the politically sensitive nature of its agricultural sector. The country's farming landscape is dominated by small-scale subsistence farmers with limited land holdings, making agricultural concessions particularly challenging from both economic and political perspectives.
Notably, India has never opened its dairy sector to foreign competition in any previous free trade agreement -- a precedent it appears reluctant to break even under US pressure.
The United States is pushing for reduced duties on agricultural products, including apples, tree nuts, and genetically modified crops.
Meanwhile, India seeks preferential access for its labour-intensive exports, such as textiles and garments, Gems and jewellery, Leather goods, and agricultural products like shrimp, oilseeds, grapes, and bananas.
Beyond the immediate interim agreement, both nations are working toward a comprehensive bilateral trade agreement (BTA) with the first phase targeted for completion by fall 2024. The ultimate goal is ambitious: more than doubling bilateral trade from the current $191 billion to $500 billion by 2030.
— ANI
Reader Comments
As someone working in textiles export, I really hope we get better access to US markets. Our handloom and garment workers deserve this opportunity. But yes, we shouldn't compromise on agriculture - it's a matter of food security.
$500 billion target seems too ambitious no? First fix basic infrastructure and logistics issues. Our ports take weeks to clear goods while China does it in days. Trade deals won't help if we don't improve our systems.
Good negotiation strategy - extending the stay shows we're serious but not desperate. Hope we get good terms for our mangoes and grapes exports! ðŸ‡ðŸ‡®ðŸ‡³ American consumers deserve to taste real Indian fruits, not just California stuff.
Why always agriculture becomes the sticking point? We need to modernize our farming methods. If we had better productivity, we could compete globally instead of always being defensive about imports.
Please no GM crops! We've seen what happened with BT cotton. Our biodiversity is too precious to risk with American agri-businesses who only care about profits. Stick to traditional farming methods that sustained us for centuries.
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