Why is it in the news?
India and the US issued a joint statement announcing a framework for an Interim Trade Agreement.
The US cut reciprocal tariffs on Indian goods to 18%, while India protected sensitive farm sectors.
Category: Interracial Relations
Important Points:
● India maintains agricultural trade surplus of USD 1.3 billion with US (Exports USD 3.4 bn; Imports USD 2.1 bn in 2024)
● US to apply zero additional duty on Indian exports worth USD 1.36 billion
● Strict “negative list” with no tariff relief for US on meat, poultry, dairy
● Staple grains (wheat, rice, maize, millets) excluded from concessions
● Fruits & vegetables like bananas, strawberries, citrus, green peas excluded
● GM corn and GM soybean imports remain banned
● Zero-duty access for Indian spices, tea, coffee, cashew nuts, coconuts
● Fruits like mangoes, guavas, papayas, avocados benefit from tariff elimination
● US allowed to export non-GM Red Sorghum to India
● DDGS allowed only as processed feed input, not GM grain entry