Trade Tensions: US-India Tariff Talks Hit Agricultural Roadblock
U.S. and India trade negotiations are stalled due to disputes over agricultural imports. With agriculture being vital to India's economy and politics, the government is wary of cheaper imports affecting local farmers. The U.S. push for market access faces resistance over GM crops and ethanol imports.
As the deadline approaches, U.S. and India trade negotiators grapple with unresolved issues in their bid to reach a tariff-reducing agreement. Central to their discord is the persistent stand-off over U.S. agricultural imports, crucial to a deal before President Donald Trump's July 9 deadline.
Agriculture, though contributing only 16% to India's $3.9 trillion economy, supports nearly 50% of its population, making it a politically sensitive area. The Indian government, influenced by a strong farmers' voting bloc, is cautious about U.S. demands and the impact of cheaper imports on local farm prices.
While the U.S. presses for wider access to its agricultural products, including dairy, corn, and ethanol, India stands firm. Concerns over genetically modified crops and ethanol blending challenge potential agreements, potentially stalling India's domestic agricultural advancements.
(With inputs from agencies.)
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