Thinking about opening up Dairy Markets for America

New delhi date. 14 February 2020, Friday

India is planning to partially open its poultry and dairy markets for the United States in the proposed trade agreement between the US and India during the forthcoming India meeting of US President Donald Trump, sources said. Donald Trump is due to visit India on February 9 and 9. This will be his first visit to India as an American president.

It is worth mentioning here that during the Free Trade Agreement, India was negotiating to exempt the free importation of dairy products from New Zealand and Australia, while there was strong opposition by the local industry.

India is the largest milk producing country in the world. To protect the country's dairy industry, India controls the import of milk and milk products. The country's 30 million rural households depend on the dairy industry.

In the 5th, Trump withdrew America's special trade status given to India by the 5th. The move came as the US government imposed price controls on medical devices such as cardiac stents and knee implants and curbed data localization requirements and e-commerce controls.

Trump's proposed visit to India has raised hopes that the United States will establish some trade preferences for India. Against this India may have to reduce tariffs and provide some concessions.

The United States is India's second largest trading partner after China. The US-India bilateral trade numbers reached US $ 8 billion in the 5th. The US trade deficit with India stood at $ 1.8 billion in the 5th.

The US has placed a condition that India will open its dairy market against the preference of Indian products in trade, sources said. However, India plans to provide this exemption with a 5 percent tariff and quota. The import of poultry products from the United States may also be permitted.

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