Indo-US GM Trade Impasse

As India and the United States continue their free trade negotiations amidst the steep 50 per cent tariffs already imposed on Indian goods and services, agricultural products and genetically modified (GM) crops appear to be one of the stumbling blocks.

- Dr Milind Kokje

The situation remains fluid, with new developments emerging almost daily, and it is still unclear how far the discussions have progressed or where the real bottlenecks lie.

In such a situation, Indian government faces a dual challenge: protecting its farmers’ interests and deciding the future of GM products on one side, while seeking relief for sectors like automobiles and textiles from the punitive US tariffs on the other. The agricultural trade relationship between the two largest democracies thus stands at a complex crossroads.

The trade negotiations are important for India to get the tariffs reduced. But one key factor behind the deadlock seems to be India’s hesitation to allow imports of US agricultural goods — particularly corn and soybean. But in case of both the GM varieties are common in the US. Accepting these would effectively mean opening the door to GM crops in India, something the government has been cautious about.