Trade deal hits hurdle over US demand of low duties on agricultural , genetically modified food

NEW DELHI: The proposed trade deal with the US has run into rough weather with Indian authorities resisting the insistence of their counterparts to allow lower-duty import of American agricultural products such as maize and soybean, fearing adverse impact on farmers and health concerns related to genetically modified food. Sources acknowledged that the talks have hit a hurdle.


In the absence of a limited deal ahead of the July 9 deadline, domestic industry will have to brace for a 26% levy, especially with a view within the govt that what the Trump administration is offering in the form of a 10% baseline tariff, applicable to all countries, is not good enough.

At the start of the negotiations, the govt was hoping to get zero duty access for several products of India's interests, including textiles, leather goods, pharmaceuticals as well as some engineering goods and auto parts.

American negotiators, who are keen that the deal be finalised, have indicated to their Indian counterparts that the Trump administration cannot go down to zero tariffs immediately. In any case, India has sought immunity from future tariff actions once a deal is in place.


Unhappiness in India over US President Donald Trump's claim - since rejected by PM Narendra Modi - of having brokered the pause in Operation Sindoor, has also not helped in creating a conducive atmosphere for resolution of trade-related issues.


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