Agriculture, Dairy Sectors Protected in US Trade Deal: Goyal
Despite apprehensions regarding India's concession to reduce tariffs on agricultural products and increase procurement from the US, potentially impacting local farmers, Union Commerce and Industry Minister Piyush Goyal reassured that the welfare of vulnerable sectors such as agriculture and dairy has been safeguarded in the trade agreement between India and the US.
The President of the US, Donald Trump, significantly reduced tariffs on India from 50 percent to 18 percent, positioning them at a competitive advantage against emerging economies and rival nations. President Trump emphasized that India has agreed to increase its purchase of American goods, particularly agricultural products.
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Agriculture Secretary Brooke Rollins highlighted that this agreement will result in a substantial increase in US exports to India, ultimately boosting prices and injecting capital into rural America. US Trade Representative Jamieson Greer elaborated that India has also committed to reducing tariffs on a wide range of goods, including various agricultural products.
Considering the intricacies of India's political and economic landscape, the government in New Delhi has made efforts to protect its agricultural and dairy industries from foreign imports during trade negotiations. Various political entities, including the Congress party, have raised significant apprehensions regarding the potential harm to the welfare of farmers and have called for greater openness in the process.
Goyal characterized the trade agreement between India and the US as monumental and superior to those negotiated by other countries, expressing confidence in its ability to strengthen the Indian economy across various sectors. He emphasized that the agreement transcends mere trade considerations, aiming to integrate India into global value chains and attract significant investments totaling lakhs of crores into the nation.
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While finer details of the trade deal are awaited, USTR Greer said in an interview to CNBC that the US will continue to maintain some level of tariff against India (18 per cent) “because we have this giant trade deficit with them”. “This is it.
"The time has come, and now we have the deal. We will finish papering it, but we know the specifics. We know the details. It’s a very exciting opportunity,” he said.
US Agriculture Secretary Rollins said America’s agricultural trade deficit with India was $1.3 billion in 2024. India’s growing population is an important market for American agricultural products and that the deal will go a long way to reducing this deficit, she said. “America First victory on top of the dozens of deals for ag (agriculture),” she said on X.
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Despite apprehensions regarding India's concession to reduce tariffs on agricultural products and increase procurement from the US, potentially impacting local farmers, Union Commerce and Industry Minister Piyush Goyal reassured that the welfare of vulnerable sectors such as agriculture and dairy has been safeguarded in the trade agreement between India and the US.
He stated that this agreement will facilitate India's acquisition of advanced technology in fields such as AI, semiconductors, and essential minerals, while also enabling the establishment of high-performance data centers and Global Capability Centers (GCCs) in the country. Goyal expressed his intention to address the details of the deal in Parliament, but attributed his inability to do so to the actions of the Congress and other opposition parties.