August 25, 2020

India warned to protect dairy and agriculture sector in US trade deal

Trade experts and farmer organisations have warned the Indian government against providing concessions in its dairy and agriculture sectors in a pending US trade deal as it could affect domestic livelihoods, The Hindu Business Line reported.

RS Modhi, Managing Director at Amul said the US dairy sector receives a US$28 billion yearly subsidy, which if it comes to India would impact the domestic industry.

Modhi was speaking at a webinar about the India-US trade deal organised by the Third World Network and IT for Change.

The United States is negotiating for concessions from India in multiple industries, including dairy in both countries' bilateral mini-free trade pact. Piyush Goyal, India's which Commerce & Industry Minister said the agreement may be signed soon.

The other concessions that the US wants India to lower tariffs for include poultry and soybeans.

A full fledged free trade agreement has not been signed by both countries as India has resisted attempts to lower tariffs in agriculture,e-commerce, intellectual property, medical equipment, and telecom from the US.

Devinder Sharma, a food and trade policy analyst said the upcoming US elections could add pressure to complete the mini-trade deal to provide concessions to its farmers.

The US filed a case with the World Trade Organisation on India's poultry imports, which pushed India's chicken imports to US$4.17 million in 2017-18, then to US$5.45 million.

Parminder Jeet Singh, from IT for Change said India's BJP government did not agree to a Regional Comprehensive Economic Partnership (RCEP) deal in 2019 after domestic farmers opposed it. The RCEP included ASEAN, Australia, China, and New Zealand. Singh said the government should follow the same political will when negotiating the US trade deal.

-      The Hindu Business Line