'India offering us best-ever deal': US official amid trade talks
What's the story
The United States has received its "best ever" market-access offer from India for a long-pending bilateral trade pact, a top US official has said. United States Trade Representative Jamieson Greer testified before the Senate Appropriations Committee that while India remains a "tough nut to crack," its latest proposals are the best the US has seen. The two-day ongoing negotiations in New Delhi aim to resolve remaining friction points, especially India's resistance to American farm goods and dairy products.
Market potential
US sees India as viable alternative market
Greer noted that despite India's resistance to certain agricultural products, the US now views India as a "viable alternative market" in its efforts to diversify trade channels. The ongoing talks are crucial as both countries aim to finalize the first phase of a framework trade deal this year. However, these negotiations come amid heightened trade tensions, with the US imposing a 50% tariff on Indian goods over New Delhi's purchase of Russian oil.
Tariff threat
US President threatens new tariffs on Indian rice
US President Donald Trump has also threatened new tariffs on Indian rice over alleged dumping in the US market. This comes after a farmer representative complained about unfair competition from India, China, and Thailand. Trump asked why India was exempt from tariffs on rice, to which Treasury Secretary Scott Bessent responded that a trade deal is being negotiated with India. "But they [India] shouldn't be doing that...We'll get it settled. Tariffs solve the problem in two minutes," Trump had said.
Export volume
US exports significant agricultural products to global markets
The US annually exports soybeans worth $30 billion, maize $17.2 billion, wheat $7.3 billion and rice $1.9 billion to global markets including China, Mexico and the EU. Greer said other countries could use US soybeans for biofuels as a potential breakthrough in trade negotiations with India. However, India's resistance to genetically modified products remains a sticking point in these discussions.
Protectionism
India maintains stance on protecting small farmers
While the US pushes for diversification of agricultural exports away from China, India remains firm on protecting its small farmers from foreign competition. The breakdown of trade talks earlier this year was due to differences over agricultural trade. Commerce Secretary Rajesh Agrawal has said New Delhi hopes to close a basic framework deal this year that would address tariff pain points for Indian exporters.