Agriculture is expected to be a key point of discussion in the anticipated interim trade agreement between India and the United States, with both countries needing to navigate the complexities of this sector.
Atul Keshap, president of the United States India Business Council (USIBC), emphasized the sensitivity of agricultural issues in any trade negotiation. He noted the cultural importance of farmers in both nations, stating that agriculture hits "very close to the home and the heart" and represents significant political constituencies. The USIBC and its member companies, along with the U.S. Chamber of Commerce, are expressing their support for the interim trade deal.
According to Jayant Dasgupta, former Indian Ambassador to the WTO, agriculture and dairy are expected to be major sticking points in trade talks between India and the US. He said that India would likely restrict common US dairy products from entering the country but may be open to more sophisticated cheese and other items that do not have a strong domestic market in India. While India has generally rejected genetically modified (GM) crops, there might be some flexibility regarding certified non-GM products. Unless the United States agrees to a tariff rate quota (TRQ), tariffs on commodities like corn and soy are likely to remain.
Both countries are reportedly aiming for an "early harvest" deal, with India seeking total exemption from an additional 26% tariff. India has proposed a three-stage roadmap for a trade pact, including an initial interim agreement, a second phase addressing 19 sectors by October 2025, and a final phase requiring US Congress approval, particularly for tariff reductions.