Amid uncertainty over whether or not India and the US will signal an interim commerce deal earlier than July 9, American President Donald Trump has mentioned that the US has begun the method of informing nations of the reciprocal tariffs they need to pay, and that he has already signed 12 letters scheduled to be dispatched on Monday.
Nonetheless, Trump had said that the reciprocal tariffs would come into impact on August 1, indicating a possible prolonged window for negotiations with nations, together with probably India, which haven’t struck a take care of the US earlier than the July 9 deadline. The US had initially introduced a 26 per cent reciprocal tariff on India.
A authorities official advised The Indian Specific that agriculture has been a significant sticking level in negotiations, significantly as a result of India has adopted an unwavering stance on this sector. Nonetheless, India has proven willingness to scale back duties throughout a broad vary of tariff traces. Historically, India has been defensive in commerce pacts regarding agriculture.
“I signed some letters and so they’ll exit on Monday, most likely 12. Totally different quantities of cash, completely different charges of tariff,” Trump advised reporters on July 4, including that the names of the nations to obtain the letters would solely be revealed on Monday.
This comes as Indian negotiators, led by Chief Negotiator and Particular Secretary Rajesh Aggarwal, returned on Friday after practically per week of talks with the US. A authorities official indicated that the seemingly interim deal will contain solely items, as companies and labour points aren’t presently a part of the negotiations.
Whereas India is looking for larger market entry for its textiles, leather-based and footwear, the US is pushing for entry to India’s agricultural and dairy markets—a significant hurdle, since Indian farmers typically function on small land parcels with restricted technological help. In distinction, the US has demanded India to drop GM regulation.
Notably, there’s important resistance to genetically modified (GM) crops in India. Just one GM crop—Bt cotton—is accredited for cultivation. No GM meals crop is commercially grown, though experimental trials proceed. Nonetheless, imports of GM soybean oil and canola oil are permitted.
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A 2013 report by the European Community of Scientists for Social and Environmental Accountability (ENSSER) emphasised that many research deeming GM meals secure have been industry-funded and that lengthy‑time period, impartial research have been missing.
“Environmental research have proven that widespread use of Bt crops can result in pest resistance, resembling within the pink bollworm, and pose dangers to non‑goal species resembling monarch butterflies, as recommended in a 1999 Nature examine. Moreover, the overuse of glyphosate with herbicide-tolerant GM crops has led to ‘superweeds’ and elevated herbicide use,” the New Delhi‑primarily based assume tank GTRI mentioned.
GTRI additional mentioned that GM and non‑GM crops could intermingle at numerous levels of the availability chain—throughout transport, storage or processing. “As soon as GM materials enters, there’s a excessive threat it might leak into native farming programs or processed meals chains, posing dangers to meals security, environmental integrity, and India’s export status—particularly in GM‑delicate markets such because the EU,” the assume tank warned.
The assume tank added that the import of GM merchandise, like animal feed, might negatively have an effect on India’s agricultural exports to the European Union, which enforces strict GM labelling guidelines and faces robust shopper opposition to GM‑linked merchandise.
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Though GM feed is permitted, many European patrons choose totally GM‑free provide chains. India’s fragmented agri‑logistics and lack of segregation infrastructure improve the chance of cross‑contamination and hint GM presence in export consignments. This might end in cargo rejections, greater testing prices, and erosion of India’s GM‑free picture—significantly in sectors like rice, tea, honey, spices and natural meals, GTRI mentioned.