TARIFFS: US Softens India Trade Agreement Amid Farm Protests
Feb-12 09:00
Indian Trade Minister Piyush Goyal told reporters that 90-95% of Indian farm products have been kept out of the pending US-India trade deal amid major nationwide protests today, per Reuters. Earlier, Goyal said negotiators are working to finalise and sign before the end of March.
- Goyal's comments come amid uncertainty over the final shape of the agreement, announced by US President Donald Trump on February 2. This week, a claim in a White House fact sheet that India “commits” to buy over USD$500 billion worth of US products has been softened to “intends to buy.” The fact sheet now omits the term “agricultural” from the list of product categories covered by the pledge, and pulses, a critical agricultural product for Indian farmers, have been excluded entirely.
- IndiaToday notes that the factsheet now does not state that “India will remove its digital services taxes.” Instead, states that “India committed to negotiate a robust set of bilateral digital trade rules..."
- Indian officials have also declined to formalise a commitment to halt Russian oil purchases, instead appearing more likely to continue a slow phase-out of Russian oil. Russian Foreign Minister Sergei Lavrov said yesterday that he has "not heard such a statement from anyone else [other than Trump], including Prime Minister Modi and other Indian leaders."
- The chief economist at GlobalData said on the agreement revision, “The [Indian] government seems to have played its cards well, drawing a hard line on the politically sensitive agriculture sector while also giving the US a promise to deepen trade ties without any binding commitment.”
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