US to seek major market access in India for agri and dairy products

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Ziraat Times
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New Delhi: The United States is set to push for substantial market access in agriculture, dairy products, ethanol, and medical devices under the proposed Bilateral Trade Agreement (BTA) with India. The two nations have agreed to finalize the trade pact within the next eight months, with negotiations expected to be intense, a report in the. Business Standard said.

According to sources familiar with the discussions, the US will demand significant concessions in key sectors, particularly dairy and agricultural products. In addition, Washington is likely to insist on the removal of price controls on medical devices, a long-standing contentious issue between the two economies.

“The US will ask for major concessions in dairy and agri products, ethanol, and removal of price control on medical devices. They will not be satisfied with the limited tariff cuts in motorcycles and bourbon whiskey,” a trade expert said.

Expected US demands

Dairy and agricultural products: The US dairy industry has long sought greater access to the Indian market, which has stringent regulatory requirements, including certification that dairy products are derived from animals fed on vegetarian diets. American producers are likely to push for relaxed norms to increase their exports to India, which has a vast but highly regulated dairy sector.

Ethanol exports: Washington is expected to urge India to allow higher ethanol imports to support its renewable energy and fuel-blending goals. India has been expanding its ethanol blending program but has mainly relied on domestic sources.

India’s likely stance

While India is open to trade discussions, it is expected to proceed cautiously, particularly in sensitive sectors like agriculture and dairy. Domestic dairy farmers and the agricultural lobby are likely to oppose any sweeping concessions, fearing an influx of cheaper US products could disrupt local markets.

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