India to Eliminate Tariffs on Wide Range of US Agricultural Products: Joint Statement
India has agreed to eliminate or reduce tariffs on a broad spectrum of US agricultural exports, as outlined in a joint statement released by New Delhi and Washington. This move is part of an interim trade agreement framework announced on Saturday, aimed at enhancing bilateral trade relations between the two nations.
Protected Sectors and Sensitive Items
Despite the tariff concessions, officials in New Delhi have confirmed that key staples and sensitive agricultural and dairy products remain fully protected from any tariff reductions. These protected items include maize, wheat, rice, soya, poultry, milk, cheese, certain vegetables, and meat products. This protection is designed to ensure the continued security of domestic farmers and rural livelihoods, addressing concerns about food security and farmer incomes.
Government Assurance on Farmer Interests
Union Agriculture Minister Shivraj Singh Chouhan emphasized that India's staple grains, fruits, major crops, millets, and dairy products are "completely secure" and face no threats from the agreement. He stated that the interests of both small and large farmers have been fully safeguarded, and the pact is expected to create new opportunities rather than risks for Indian agriculture.
Addressing Non-Tariff Barriers
The interim agreement also commits India to addressing long-standing non-tariff barriers that have affected US agricultural exports. Both sides have agreed to work towards resolving regulatory and market access issues in a time-bound manner, facilitating smoother trade flows and reducing bureaucratic hurdles.
Rules of Origin and Future Modifications
To ensure that trade benefits primarily accrue to producers in India and the US, the two countries have agreed to establish clear rules of origin. Additionally, the agreement retains the right for either side to modify commitments if agreed tariff structures are altered, providing flexibility in the evolving trade landscape.
Balanced Approach to Trade Engagement
Officials described the calibrated approach as reflecting India's effort to balance export-driven trade engagement with the need to protect food security, farmer incomes, and rural employment. This strategy aims to foster economic growth while maintaining social and economic stability in agricultural sectors.
Broader Context and Future Negotiations
The interim framework is a step towards a comprehensive India-US Bilateral Trade Agreement, which is expected to further address agricultural market access issues alongside industrial and services trade. This ongoing negotiation underscores the commitment of both nations to deepening their economic partnership and resolving trade disputes through dialogue and cooperation.
