India offers to import US dairy, chicken legs to seal elusive trade deal with Trump

NEW DELHI/WASHINGTON: India has supplied to partially open up its poultry and dairy markets in a bid for a restricted commerce deal throughout US President Donald Trump’s first official go to to the nation this month, folks aware of the protracted talks say.
India, the world’s largest milk-producing nation, has historically restricted dairy imports to guard the livelihoods of 80 million rural households concerned within the trade.
However Prime Minister Narendra Modi is attempting to tug all of the stops for the US president’s February 24-25 go to, geared toward rebuilding bonds between the world’s largest democracies. In 2019, Trump suspended India’s particular commerce designation that dated again to 1970s, after Modi put value caps on medical units, equivalent to cardiac stents and knee implants, and launched new information localization necessities and e-commerce restrictions.
Trump’s journey to India has raised hopes that he would restore a few of the nation’s US commerce preferences, in change for tariff reductions and different concessions.
The US is India’s second-largest commerce associate after China, and bilateral items and providers commerce climbed to a document $142.6 billion in 2018. The US had a $23.2 billion items commerce deficit in 2019 with India, its ninth largest buying and selling associate in items.
India has supplied to permit imports of US hen legs, turkey and produce equivalent to blueberries and cherries, Indian authorities sources stated, and has supplied to chop tariffs on hen legs from 100% to 25%. US negotiators need that tariff reduce to 10%.
The Modi authorities can be providing to permit some entry to India’s dairy market, however with a 5% tariff and quotas, the sources stated. However dairy imports would want a certificates they aren’t derived from animals which have consumed feeds that embrace inner organs, blood meal or tissues of ruminants.
New Delhi has additionally supplied to decrease its 50% tariffs on very massive bikes made by Harley-Davidson, a tax that was a specific irritant for Trump, who has labeled India the “tariff king.” The change can be largely symbolic as a result of few such bikes are offered in India.
Trump will probably be feted in Modi’s residence state of Gujarat, then maintain talks in New Delhi and attend a reception that the hosts have promised will probably be greater than the one organized for former president Barack Obama in 2015.
Sufficient for Lighthizer?
However it’s removed from clear whether or not India’s gives will probably be sufficient to fulfill US commerce consultant Robert Lighthizer, who cancelled plans for a visit to India this week. As an alternative, he has held phone talks with Indian commerce minister Piyush Goyal.
The US dairy trade remained skeptical on Thursday {that a} viable deal is at hand.
“We’re at all times on the lookout for market entry, however by way of India, as of in the present day I am not conscious of any actual progress happening,” stated Michael Dykes, president of the Worldwide Dairy Meals Affiliation and a member of USTR’s agricultural commerce coverage advisory committee.
Dykes stated the US dairy trade was on the lookout for entry in viable business portions.
A USTR spokesman and India’s commerce ministry didn’t reply to requests for remark.
Privateness legislation problems
An Indian parliament panel is reviewing a draft information privateness legislation that imposes stringent controls over cross-border information flows and provides the federal government powers to hunt consumer information from firms.
It isn’t clear whether or not will probably be handed, or in what kind, however the potentialities have unnerved US firms and will elevate compliance necessities for Google, Amazon, and Fb.
The draft legislation isn’t a part of the commerce discussions, Indian officers say, as a result of the difficulty is just too tough to resolve on the similar time.
“The privateness and localization piece will probably be raised independently and in live performance with the commerce discussions,” stated a Washington-based supply with data of the US administration’s considering.
Trump on Tuesday was non-committal about sealing a commerce deal earlier than his go to. “If we are able to make the best deal, we’ll do it,” he instructed reporters.
Two US sources stated progress had been made on proposed alterations to the medical machine value caps. India’s new import tariffs on medical units, walnuts, toys, electronics and different merchandise on February 1 shocked US negotiators.
The brand new tariffs had been geared toward China, which additionally makes medical units, in accordance with an Indian authorities supply. “We’ve to guard our market and our firms,” the supply stated.

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