The long-running bilateral trade talks between India and the US have now reached a decisive turn. On the one hand, the US wants India to give concessions in import duty on dairy and agricultural products At the same time, India has refused to do so. All this is happening at a time when both countries are trying to finalize an interim trade agreement. This agreement can later become the basis of a comprehensive bilateral trade agreement (BTA).
These talks have been going on in Washington since the end of June and are now in their sixth day, but no concrete agreement has been announced yet. According to top sources in the Indian government, India has outright rejected the US demand for tariff exemption on dairy products. This sector provides employment to more than 8 crore people in India, most of whom are small farmers.
A senior official said bluntly, “There is no question of giving any concession on dairy. This is our red line.” The government believes that giving concessions in sensitive sectors like agriculture and dairy can be disastrous for India’s rural economy. Commerce Ministry Special Secretary Rajesh Agarwal, who is leading the Indian delegation, has extended his visit to Washington by one more day in order to resolve the deadlock.
This dialogue started on June 26 and has now entered its sixth day on Tuesday. The dialogue is likely to continue on Wednesday as well. Meanwhile, External Affairs Minister S. Jaishankar is also in the US and is scheduled to meet his American counterpart Marco Rubio during a diplomatic meeting. This meeting is also considered important in the direction of breaking the deadlock in the trade talks.