America may insist on duty reduction in trade talks with India

05-May-2025 06:11 PM

New Delhi. The round of talks for a bilateral trade agreement between India and the United States is underway. The US is expected to push for significant changes in India’s trade policies.

This includes a demand to reduce import duties on American products and to eliminate non-tariff regulatory barriers, aiming to maximize market access for American producers and exporters.

Agriculture may be a key focus of the proposed agreement. India currently bans the production, import, and use of genetically modified (GM) crops and products, whereas the US widely produces GM soybean and corn.

With US exports to China declining due to ongoing tariff conflicts, the US sees India as a potential alternative market for these products.

According to a senior analyst, the US wants India to either suspend or halt further increases in the Minimum Support Price (MSP) for wheat and rice.

Additionally, the US is pressing for the removal of restrictions on GM agricultural and food products and significant reductions in customs duties on these items. However, these demands are likely to be difficult for India to accept.

GM crops remain a contentious issue in India and are currently under judicial review. The MSP system is politically and economically sensitive and would require careful consideration by the Indian government.

Regarding customs duties, India may consider reducing import taxes on select non-GM products. The US has also criticized India’s GM-free feed certification and facility registration protocols,

claiming these are negatively affecting the import of American dairy products, and is demanding the removal of these requirements.