Commerce and Industry Minister Piyush Goyal on Sunday said that adequate safeguards have been built into the India-US trade agreement to protect the interests of Indian farmers and domestic industry, dismissing concerns over a potential surge in imports.
Goyal said the trade deal would ultimately benefit Indian farmers, who are already exporting agricultural and marine products worth USD 50–55 billion annually. He underlined that Indian exporters would enjoy a competitive edge in the US market due to the relatively lower tariff regime applicable to India.
“Indian goods will have an advantage in the American market. While India faces an 18 per cent tariff, competitor countries like China face duties as high as 35 per cent, and several others are subject to levies of over 19 per cent,” the minister said.
Referring to criticism that the safeguards were not clearly outlined in the two-page India-US joint statement, Goyal said such claims were misleading. “This is a work in progress. Trade agreements are not concluded in a single document. Safeguards are a normal outcome of any negotiation and exist on both sides,” he said.
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Drawing a comparison with negotiations on a proposed free trade agreement with the European Union, the minister noted that such deals typically involve extensive documentation and prolonged consultations. “Both India and the US have sensitivities regarding certain products, and safeguards exist for those,” he added.
Goyal clarified that India has not extended any duty concessions on sensitive sectors such as dairy, genetically modified products, meat, poultry, soya meal and corn. However, limited market access has been provided for certain pulses and lentils that India imports to meet domestic demand.
“Trade has to be a give and take. If we do not offer anything, how will we secure access for our farmers in the US market?” he said.
The minister said India has opened its sectors in a calibrated and balanced manner, keeping long-term growth and farmer welfare in mind. On dry fruits, he pointed out that India imports around USD 3.5 billion worth of tree nuts annually, of which nearly USD 1 billion already comes from the US.
“If imports from the US help consumers get products at lower prices, there is no reason to oppose it. The biggest stakeholder is the consumer, 1.4 billion Indians,” he said.
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