The cool trade talks between India and the US have once again returned to track. A delegation from Washington, a few weeks after the US President Donald Trump put heavily tariffs and suspend the talks, reached New Delhi to resume the negotiations. This dialogue has also started in a positive environment. It is being told that this time America has come up with some concessions. The US team is no longer demanding widespread access to India’s huge agriculture and dairy markets. Instead, she is only expecting to buy American cheese and corn from India. US officials say that their goal is not to compete with India’s sensitive small dairy farmers, but is focused on selling high-class products- such as premium cheese.
However, there are hurdles in the US maize export scheme, as most of its corn is gentiically modified (GM), which India neither allows to import nor domestically in farming. Apart from this, there is a possibility of political opposition in states like Bihar, given the electoral scenario.
Experts believe that this ‘inclination’ policy of America is a product of its domestic agrarian crisis. The ongoing trade war with China has put American farmers in deep economic losses. China, which was the largest buyer of America, has now turned to options like Brazil. In such a situation, American warehouses are filled with soybean and corn without selling. This is the reason that the Trump administration is now showing flexibility towards an agreement with a large market like India.
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On the other hand, the talks started in New Delhi have been called a long tussle by experts. The Global Trade Research Initiative (GTRI) says that no major breakthrough is possible until the US withdraws 25% duty on oil imports, especially from Russia.
On the other hand, the re-introduction of Indo-US trade talks is not only economic but also geopolitically. This is a proof of the fact that how strong India’s situation has become in global politics that America has had to bow to dialogue today.
The initial aggressive tariff policy of the Trump administration actually proved to be the opposite for the US. The ongoing trade war with China has broken the back of American farmers. In such a situation, a large and possibilities like India have become indispensable for America. This is the reason that earlier America, which was demanding India to open dairy and agricultural markets, is now stuck on limited products like premium cheese and maize.
There is no doubt that India showed a strategic patience in this entire development. Prime Minister Narendra Modi neither gave the message of bowing to American pressure nor adopted the path of unnecessary confrontation. “Swadeshi” and his message of standing with farmers was a strong political indication within the country, while on the global platform it became clear that India would not compromise its interests in front of American pressure.
Nevertheless, caution is required. This flexibility shown by the US is not permanent, but a situation. As soon as his farmers come out of the crisis or the equation with China changes, he can again take the path of strictness. In addition, issues like GM Corn will remain sensitive to domestic politics for India.
However, this new phase of Indo-US trade talks is an opportunity, but it will not be easy. India will have to move forward with long -term preparations and give the top priority to the safety of its farmers, domestic industry and consumers. No matter how much the US offers ‘cheese’, India will have to take care that no agreement weakens its foundation of its sovereignty and self -sufficiency.