India is also engulfed in last-minute talks with the US to get a mini trade deal during the July 8 deadline. This agreement is meant to stop an introduction of a 26 percent tariff on Indian exports as of July 9. The most specific questions within those negotiations are the import of externally modified (GM) crops, cow milk and the elimination of the reciprocal tariffs. U.S. President Donald Trump has alluded to a substantial trade bargain with India and in the event that no concurrence happens the U.S. charges will go into reality on July 9.
Context
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India and the U.S. are striving to seal a trade agreement within the next two days by July 8 or face imposition of a 26 percent tariff on their imports.
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The agreement revolves around GM crops, the importation of cow milk and cutting tariffs.
Key Points
Expiration date of Agreement:
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India seeks to complete a mini trade deal by July 8 so that the exports would not be subjected to a 26% tariff effective July 9.
Primary Issues:
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The major barriers put in place involve importation of GM crops and cow milk within India, which are sensitive to India.
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The introduction of GM crops can be detrimental to domestic agriculture and importation of cow milk is controversial at this point.
U.S. Demands:
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The U.S. is seeking concessions on industrial items, automobiles, electric vehicles, wines, petrochemicals products, dairy and agricultural products.
India’s Requests:
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India wants the tariffs which are imposed on the basis of the so-called Liberation Day and the tariffs levied on the steel and the aluminum to be removed and a reduction to be made on the same.
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The country is also making concessions in its labor-intensive industries such as textiles, gems, jewelry and agricultural exports such as shrimp, oilseeds, grapes, bananas among others.
Political Context:
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President Trump has reportedly suggested a big trade pact with India that would further liberalize the Indian market.
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The talks are part of resolving trade problems that exist in the U.S since it has tariffs on imports on several countries and India is one of them.
Conclusion
India is in negotiation with the United States and this is crucial as the July 8 deadline is near. A trade agreement is much needed so that high tariffs can not be imposed especially in the industries such as agriculture, textile, as well as chemicals. The fate of the same however depends on the resolution of sensitive matters like the importation of GM crops and cow milk whose importation is the major challenge yet in the discussions.
