India’s top trade negotiator has extended his stay in Washington as trade talks enter the final phase to seal an interim deal. Sources told CNBC-TV18 that a stalemate continues over the agriculture and dairy sectors. The Trump administration is keen on maintaining a 10% tariff rate with India, while the Indian government wants tariffs reduced to zero across several sectors.The talks have reached a critical point, with the next two to three days expected to be important for the negotiations. The main pain points are agriculture and dairy, where India has conveyed its red lines. Agriculture remains a sensitive sector with a large farming community and small landholdings. India has not given market access in agriculture to any other country.
On dairy, India has raised reservations, particularly regarding US practices such as feeding livestock with blood meal, which is unacceptable in India. India has conveyed to the US that this cannot be accepted and that pushing too hard may force India to walk away.
A stalemate currently persists as the US demands broad concessions, while India wants agriculture and dairy excluded to allow progress on an interim deal. On steel, the US wants to maintain a 26% tariff on Indian imports and is imposing similar tariffs on other countries. An exemption for India appears unlikely. Overall, agriculture and dairy remain the key hurdles.The Indian negotiating team, led by Rajesh Agarwal, is extending its stay in Washington to continue talks. India is pushing for a competitive edge in labour-intensive manufacturing sectors like textiles to better compete with Vietnam, Indonesia, and Bangladesh in the US market.Mukesh Aghi, President and CEO of USISPF, said the industry body is confident an interim deal—excluding agriculture and dairy—will be reached in the next two to three days. “India, under the law, cannot allow GMOs, so the government’s hands are tied. We are trying to explain to the US government not to push too hard in that area,” he said.“Our feeling is that the US will focus on getting the first interim deal done and then take up agriculture, dairy, and other issues later. Our estimate shows slightly over 6,000 product lines in the relationship, which both sides have agreed to move forward on.”(Edited by : Akanksha Upadhyay)
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