India Steps Up Agricultural Stance in Crucial US Trade Talks

In a critical phase of trade negotiations, India has taken a resolute position on agricultural matters amid talks with the United States, according to governmental sources.

India, led by Chief Negotiator Rajesh Agrawal, has prolonged its dialogue in Washington beyond the initial schedule. The discussions, originally planned for Thursday and Friday, have stretched as both nations urgently work towards an interim trade agreement deadline of July 9. Failure to reach consensus would reinstate suspended 26% reciprocal tariffs, originally enforced by the Trump administration.

A senior official emphasized the potentially dire consequences, noting, "Failure would trigger the reinstatement of the 26% tariff structure." The challenges are compounded by the political sensitivities surrounding India's agriculture, dominated by small-scale farmers. Notably, India has consistently resisted opening its protected dairy sector to foreign entities despite US pressure, which demands lowered duties on its agricultural produce.

Conversely, India seeks favorable terms for its export segments, including textiles, gems, and agricultural goods. While both countries aim for a short-term accord, efforts are directed towards establishing a comprehensive bilateral trade agreement by fall 2024. This ambitious goal seeks to elevate trade volume from $191 billion to $500 billion by 2030.

(With inputs from agencies.)