Trade deal: US fact sheet flags wider access to India’s agricultural market
February 6 Indo-US joint statement had clearly specified that red sorghum imports from the US would be for animal feed; this qualification has disappeared from the White House fact sheet
The latest White House fact sheet on the Indo-US interim trade deal has flagged a broader opening of India’s agricultural market to American products than what was outlined in the Indo-US joint statement issued on February 6, including references to items that were either absent or more narrowly defined earlier.
According to the US fact sheet document dated February 9, India has agreed to “eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products”, including dried distillers’ grains (DDGs), red sorghum, tree nuts, fresh and processed fruit, certain pulses, soybean oil, wine and spirits, among others.
The inclusion of “certain pulses” marks a notable departure from the joint statement, which made no mention of pulses at all.
Further, while the February 6 Indo-US joint statement had clearly specified that red sorghum imports from the United States would be for animal feed, this qualification has disappeared from the White House fact sheet.
The expanded agricultural language in the US document is likely to draw attention in New Delhi, given the political sensitivity of farm imports and India’s traditionally high tariff protection in the sector.
Separately, the White House fact sheet revealed that it was during a phone call between US President Donald Trump and Prime Minister Narendra Modi last week that Washington agreed to remove the additional 25 per cent tariff imposed on imports from India.
The move was taken in recognition of New Delhi’s commitment to stop purchasing Russian oil.
The document said President Trump subsequently signed an Executive Order last Friday formally withdrawing the additional tariff. It also stated that, in view of India’s willingness to align with the United States on systemic trade imbalances and shared national security challenges, Washington would lower the reciprocal tariff on India from 25 per cent to 18 per cent.
The tariff rollback and market-access commitments form part of a framework for an Interim Agreement on reciprocal trade, reached during the Trump-Modi call and reaffirmed in the February 6 joint statement.
Responding to claims by US President Trump that New Delhi had agreed to stop buying Russian oil as part of the major India-US trade deal, India has multiple times in the past made it clear that its energy sourcing decisions are guided solely by national interest and the imperative of ensuring energy security for its 1.4 billion people.
The White House fact sheet also said India has committed to step up purchases of American products, including over $500 billion worth of US energy, information and communication technology, agricultural, coal, and other goods, while addressing non-tariff barriers, removing digital services taxes, and negotiating rules of origin.
The two sides are expected to implement the framework in the coming weeks and continue negotiations toward a comprehensive Bilateral Trade Agreement (BTA), covering remaining tariff and non-tariff barriers, services, investment, intellectual property, labour, environment, and government procurement.
The differences between the joint statement and the subsequent White House fact sheet, particularly on sensitive agricultural items, are likely to be closely scrutinised as talks progress.
