New Delhi: India has safeguarded the sensitivities of its agriculture and animal husbandry sectors in the interim US trade deal, Finance Minister Nirmala Sitharaman said on Saturday.
As part of the interim trade deal framework, the US will slash reciprocal tariffs on Indian goods to 18 per cent, providing a huge market opportunity in key sectors such as textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home decor, artisanal products, and select machinery in the world’s largest economy.
“The framework protects key farm and dairy products, spices, and staples, strengthening farmer incomes,” said FM Sitharaman.
The Agreement reflects India’s commitment to safeguarding farmers’ interests and sustaining rural livelihoods by completely protecting sensitive agricultural and dairy products, including maize, wheat, rice, soya, poultry, milk, cheese, ethanol(fuel), tobacco, certain vegetables, meat, etc.
The United States and India commit to provide each other preferential market access in sectors of respective interest on a sustained basis.
The United States and India will also establish rules of origin that ensure that the benefits of the Agreement accrue predominately to the United States and India., according to a White House statement.
“The United States and India will address non-tariff barriers that affect bilateral trade. Recognising the importance of working together to resolve long-standing concerns, India also agrees to address long-standing non-tariff barriers to the trade in U.S. food and agricultural products,” said the statement.
The White House further stated that they will work towards further expanding market access opportunities through the negotiations of the BTA. The United States affirms that it intends to take into consideration, during the negotiations of the BTA, India’s request that the United States continue to work to lower tariffs on Indian goods.
India will also get exemptions under section 232 on aircraft parts, tariff rate quota on auto parts and negotiated outcomes on generic pharmaceuticals, leading to tangible export gains in these sectors.
(IANS)
