'Only quotas offered in most farm goods for US duty cuts'

NEW DELHI: As an Indian team heads to Washington to finalise the legal text for the interim trade agreement, which is sought to be signed by March, officials on Monday said that govt had offered quotas in most agricultural goods, where duty is sought to be reduced as part of the deal with the US.

They said that in most cases, the quantities offered are small and inputs, such as cotton that are already being imported, will be allowed in a way that they feed into the requirements of the Indian textiles industry, which can step up exports after the finalisation of trade agreements with the European Union and the UK. The officials said quotas for agricultural products, which have been offered in other trade agreements too, are in line with current imports.

"We have looked at our requirements. Besides, we are a net exporter of agricultural products. The deals will help us increase export of farm goods and open a $400 billion opportunity in the EU and the US," the official said.

India's agricultural exports to the US are pegged at $2.8 billion, while imports are around $1.5 billion. India's imports of farm goods add up to around $35 billion, while exports are valued at over $50 billion, the official argued.

The comments come amid attacks from Opposition parties, which have accused govt of offering significant concessions to the US. Govt has argued that it has protected its sensitivity in farm and dairy.

Officials also said the agreement will be on the lines spelt out in the joint statement and there had been discussion around digital service tax and e-commerce with the US, although they may be taken up when a full bilateral trade agreement is negotiated. They said that the details will be known once the agreement is signed.

Commerce secretary Rajesh Agrawal said that India's chief negotiator Darpan Jain will be visiting the US to finalise the legal text. "The joint statement lays down the contours of the deal. Now, this has to be translated into a legal agreement, which will be signed between the two sides," he said. Agrawal, who was earlier India's chief negotiator, indicated that the US will lower the reciprocal tariff from 25% to 18% this week.