No tariff cut likely for US grains, meat, animal feed

NEW DELHI: Animal feed, ethanol for fuel, poultry, flowers and tea are likely to be among items on the negative list for import concessions given to the US under the first tranche of bilateral trade deal, for which a joint statement is expected in the next few days, reports Sidhartha.

In line with commerce and industry minister Piyush Goyal's assertion that India's sensitivities in agriculture and dairy have been protected, persons familiar with the deliberations told TOI that rice, wheat, other cereals, dairy products, soymeal, maize, meats and genetically modified food products are the other items on the list where India is not offering any tariff concessions.




US corn resisted over GM food concerns

In addition, they said that potatoes, onion, garlic, copra, atta, chicken and tobacco are also expected to be outside the ambit of the first tranche of the framework agreement. Those familiar with the discussions said even in other product segments, govt will go for calibrated opening up, opting for quotas in products such as apples, something it has done with the EU and New Zealand, while also opting for a long phasing period.

India has so far managed to keep dairy and agriculture outside the ambit of its trade deals, including the ones with the UK and the European Union, and has made a strong effort to continue with protection for vulnerable sections of society. Officials have argued, including with the US, that Indian farmers have small land holdings with several of them undertaking subsistence farming and allowing even limited quantities of wheat and rice would be detrimental to their interests.

Genetically modified food is the other area of concern given that govt has reservations on allowing such products into the country and allowing American corn would have opened the doors to GM food, something that was being resisted. One of the options was to allow ethanol blending but that would upset sugarcane growers.

India's import of agricultural goods from the UK are pegged at over $2 billion, while exports are around $3.4 billion. As part of the framework agreement for BTA, the US agreed to lower reciprocal tariff for Indian exports into its market to 18%, from 50%, which includes 25% secondary or penal tariffs for New Delhi purchasing Russian oil.