Emphasis on protection of India's agricultural sector in trade agreement with US

Mumbai, Ta. 24 August 2020, Monday

India should not provide any concessions to the US agriculture and dairy sector in the ongoing limited trade agreement with the US and in the subsequent proposed trade agreement. Some experts are of the opinion that cheap dairy products will be a lifeline for Indian farmers.

In India, the dairy and agriculture sector is not a trade but the livelihood of millions of people depends on it. The US dairy sector receives વર્ષે 5 billion a year in subsidies. Concerns were raised at a webinar on the Indo-US trade agreement on how Indian farmers could compete with these cheaper products if they started coming to India.

The US is seeking relief from India in a small bilateral free trade agreement on dairy products, including milk powder. The trade deal is set to be finalized soon, Commerce Minister Piyush Goyal said recently.

The US wants India to immediately reduce tariffs on some agricultural products besides apples, soybeans, soybeans and almonds.

India has so far opposed the demand for concessions in areas like agriculture, medical equipment, telecom, e-commerce, which has made a full-fledged trade agreement between the two countries impossible.

Farmers in the US, like in India, have a large vote bank, so the current Trump administration is likely to force India to sign agricultural contracts to please its farmers. Elections are scheduled for November in the United States. Therefore, Indian farmers need to be vigilant in this regard, said an analyst.

Farmers' incomes in the United States are declining and they are currently going through difficult times, he added. The United States is trying to exert pressure through the World Trade Organization and bilateral trade talks.