India should remain extremely cautious about giving duty concessions to the US on agricultural crops: GTRI

Think tank -- the Global Trade Research Initiative (GTRI) has said that India should remain extremely cautious about giving duty concessions to the US on agricultural crops or genetically modified products, and should insist on a drastic cut in the high tariffs.

It added India should also avoid making commitments until the US Supreme Court delivers its verdict on President Donald Trump's tariff authority, which could reshape the entire negotiating table overnight. India and the US are negotiating a bilateral trade agreement, and a team of officials from Washington is in New Delhi for two-day talks beginning Wednesday.

GTRI Founder Ajay Srivastava said, ‘If the US is serious about partnership, it should first cut the punitive tariff on Indian exports from 50% to 25%, especially since the Russian oil issue -- the stated trigger -- has already been resolved’. While briefing the US Senate, US Trade Representative Jamieson Greer said that the US trade team is currently in New Delhi working with Indian authorities on the proposed bilateral trade agreement.

He acknowledged that India remains ‘a very difficult nut to crack’ when it comes to accepting US exports of certain row crops and meat products, but added that New Delhi has recently been ‘quite forward-leaning’ in negotiations and that the offers on the table are ‘the best we've ever received as a country’, making India a viable alternative market for US exporters.

He also said row crops refer to large-scale agricultural commodities grown in mechanised farm rows and traded globally, such as corn, soybeans, wheat, cotton, rice, sugarcane, barley, sorghum and canola -- products that are politically sensitive in India due to farmer livelihoods and food security concerns. He added that USTR's testimony offers an authentic glimpse into US-India trade talks, but it reveals only what Washington wants from India and not what it is willing to give in return.