Trade Turmoil: NITI Aayog Retracts Indo-US Agriculture Paper

The NITI Aayog has withdrawn a working paper on Indo-US agriculture trade. It suggested India could reduce tariffs on certain US agri-imports and seek better exports deals. Concurrently, India and the US are in crucial negotiations for a trade agreement, aiming to double bilateral trade by 2030.

The government think-tank NITI Aayog has retracted a controversial working paper focused on Indo-US agricultural trade amid tense ongoing negotiations between the two countries. Congress leader Jairam Ramesh highlighted the U-turn, underscoring its significant implications on trade dynamics.

The working paper, briefly visible online, had recommended India consider a dual-track strategy. This strategy involved selectively lowering imported tariffs on non-essential US agricultural products, while simultaneously negotiating better access to the US market for Indian exports such as shrimp, rice, and spices.

The backdrop to these developments is a series of intensive trade discussions aimed at finalizing an interim trade agreement before the looming July 9 deadline. The stakes are high, with a potential doubling of bilateral trade on the horizon, though hurdles like tariffs on both sides remain a substantial sticking point.

(With inputs from agencies.)