‘India won’t come under pressure, farmers’ interests first’: After Goyal, Shivraj spells out stand on US trade deal

As trade negotiations between India and the United States reach a critical juncture, Union Agriculture Minister Shivraj Singh Chouhan has made it clear that New Delhi will not compromise on core interests. “‘Nation first’ is our moolmantra. No negotiations will take place under pressure. Negotiations will be done keeping the interests of farmers in mind. India will not come under any kind of pressure,” Chouhan said on Sunday.

Commerce Minister Piyush Goyal also underscored this stance, saying India refuses to be rushed into trade deals. “An FTA should be a win-win. India never negotiates trade deals based on deadlines. Our focus is always on fairness and what benefits the country,” he told reporters on Friday. Goyal added that negotiations are ongoing with multiple global partners, including the US and EU. He also clarified that there are no immediate plans to visit Washington D.C. as Parliament session will commence soon.

Discussions between the two nations are ramping up as they approach the July 9 deadline for finalizing a stalled 26% reciprocal tariff system. A senior Indian delegation was recently in Washington engaging in talks about a temporary trade agreement. The US has been advocating for tariff reductions on industrial products, electric vehicles, wines, petrochemicals, dairy, and agricultural items such as apples and tree nuts. In contrast, India has focused on duty reductions for textiles, gems and jewellery, leather, shrimp, bananas, grapes, and other labour-intensive exports.

However, the main issues persist concerning agricultural and dairy allowances. These areas are politically delicate and crucial for the economic well-being of India’s rural communities. India has not previously liberalized its dairy industry in any trade agreement, and due to the fact that most Indian farmers participate in small-scale subsistence farming, the government is hesitant to jeopardize them with subsidized imports from the US.

The Global Trade Research Initiative (GTRI) recently stated that US goods such as rice, dairy, poultry, and GM soy receive substantial subsidies, providing them an unfair edge over Indian producers. It stated that any pledge to permanently reduce agricultural tariffs under the India-US free trade agreement would be irreversible and strategically unwise.

“Reducing tariffs on American agricultural products may threaten India’s food security by subjecting small farmers to inexpensive, subsidized imports and fluctuations in global prices,” stated GTRI founder Ajay Srivastava. “India needs to maintain tariff flexibility to safeguard the livelihoods of over 700 million rural residents and prevent repeating previous errors from global trade agreements.”