New Delhi/Washington: The a lot talked about commerce talks between India and america, which have been underway for the previous 4 months, haven’t made any breakthrough thus far. The important thing impediment lies in India’s refusal to simply accept a number of US calls for associated to agricultural imports, significantly within the dairy sector.
America is pushing for larger entry to the Indian marketplace for its dairy merchandise, together with milk, cheese and ghee. Nevertheless, India has firmly opposed the entry of dairy merchandise from cows fed with animal-based enzymes corresponding to rennet, which is usually derived from animal bones. These feed practices are routine in america and are geared toward enhancing dietary worth.
In India, milk from such cows is classed as “non-veg milk”, which raises non secular and cultural objections. Being the world’s largest milk producer with thousands and thousands of small farmers reliant on the dairy business, India fears that low cost imports may severely influence rural livelihoods.
Past dairy, Washington can be looking for decrease tariffs on wheat, rice, soybeans, maize, apples and grapes. India maintains excessive import duties on these merchandise to guard its home farmers.
One other vital sticking level is genetically modified organisms (GMO). The world’s largest producer and exporter of GMO crops, america needs India to calm down its restrictions. New Delhi at the moment permits solely genetically modified cotton, banning different GMO crops as a consequence of issues over well being, environmental security and sovereignty.
India isn’t alone in resisting these U.S. calls for. Nations corresponding to South Korea, Canada, Switzerland and Iceland have taken related stands.
South Korea presents duty-free entry to American items underneath particular agreements however has refused to open its rice and beef markets totally. Although beef imports from cattle older than 30 months stay banned right here as a consequence of fears of mad cow illness, South Korea stays a serious purchaser of US beef. It imports over $2.2 billion value in 2024. Strict GMO laws additionally stay in place.
Canada makes use of a provide administration system for dairy, poultry and eggs, which limits manufacturing to match home demand, making certain secure costs and stopping oversupply. Imports exceeding quotas face tariffs as excessive as 300%.
America imposed a 35% tariff on Canada just lately, citing Ottawa’s recognition of Palestine as a separate state as the rationale.
Switzerland faces a 39% U.S. tariff over a $45 billion commerce imbalance. The Swiss authorities closely taxes dairy and meat imports to guard native farmers. Round 25% of Swiss agricultural income comes from dairy, supported by authorities subsidies that additionally assist protect the setting.
Iceland, with a relatively decrease 15% U.S. tariff, enforces strict controls on overseas dairy and farm items, providing subsidies to native farmers and limiting imports to safeguard meals safety.
For India and these nations, agricultural insurance policies are about extra than simply commerce. They’re deeply related to rural livelihoods, cultural values and nationwide pursuits. These international locations proceed to withstand Washington’s push to open their agricultural markets, highlighting the complexities of world commerce negotiations.