US Pushes for Grand Trade Pact, Seeks Opening of Agri Sector

Talks Are Also On With Two Other Developed Markets - UK & EU

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NEW DELHI: The US is pushing India to negotiate a "large" and "grand" bilateral trade agreement while seeking opening the agriculture sector for American businesses, saying "it just cannot stay closed".

This will be an important agreement which India will negotiate with a developed economy. Talks are on with two other developed markets - the UK and the EU. It is essential to understand why the US is keen on India's agriculture sector. A list of Q & As (questions and answers) to explain these issues:

What is a 'large' and 'grand' bilateral trade agreement?

Normally, in a trade pact, two trading partners either eliminate or significantly reduce customs duties on maximum number of goods traded between them.

However, the US seeks to negotiate a comprehensive trade agreement covering all key aspects, rather than engaging in sector-specific discussions.

Beyond tariff reductions, the US may like to include provisions on government procurement, agricultural subsidies, patent law relaxation, and unrestricted data flows' issues that India has largely opposed.

Why does the US want India to open its agriculture sector?

Agriculture in India is not just an economic activity but a way of life, supporting over 700 million people. India is largely self-sufficient in food production, whereas for the US, agriculture is a major trade industry.

As per a report, in 2024, US agricultural exports stood at $176 billion, accounting for about 10 per cent of its total merchandise exports.