India-US Agricultural Trade Negotiations
India, in its trade negotiations with the United States, has categorized its agricultural commodities into three categories based on economic and political sensitivity: non-negotiable, very sensitive, and liberal.
Non-Negotiable Items
- Includes staples like rice and wheat.
- No tariff concessions will be entertained for these items.
Very Sensitive Items
- Items like apples, crucial for farmer interests in states such as Himachal Pradesh and Uttarakhand.
- May face restricted concessions through methods like minimum import prices (MIP) or tariff-rate quotas.
Liberal Category
- High-value imports such as almonds, pistachios, walnuts, and blueberries.
- India is open to drastically reducing tariffs on these items.
Trade Deal Context
Both countries aim to sign a mutually beneficial Bilateral Trade Agreement (BTA) by fall, with an early tranche focusing on market access due to a reciprocal tariff scheduled to commence from July 9.
US Perspective
- US Commerce Secretary Howard Lutnick emphasizes the need for political will on both sides.
- US agricultural commodity associations have expressed concerns over India's high domestic subsidies and trade barriers.
Specific Commodity Concerns
- The International Dairy Foods Association sees potential for US dairy exports to India if restrictions are lifted.
- The US Wheat Associates points out high domestic support in India affecting US wheat producers.
- The Illinois Corn Growers Association highlights import prohibitions on genetically modified corn and ethanol.
- The American Soybean Association notes significant tariff and non-tariff barriers in India.
- The Almond Alliance seeks reduced duties for almonds to compete with Australia.
- The North American Blueberry Council and California Cherry Board advocate for tariff eliminations on their respective products.
- The California Table Grape Commission requests the removal of high tariffs on fresh grapes.
