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- India US Trade Deal Likely Soon: Tariff May Drop From 50% To 15%, India May Import More US Corn And Ethanol
New Delhi/Washington DC27 minutes ago
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There are chances of a trade deal between India and America soon. According to a report, India’s 50% tariff on selected goods may be reduced to 15%. According to sources related to the trade deal, energy and agriculture sectors are most important on the negotiation table. India can give some concessions in these.
American negotiators are claiming that India can gradually reduce the purchase of Russian crude oil. Also, it can open the market for non-GM (genetically modified) maize and soymeal from America.
India believes that American products will be consumed by the rapidly growing domestic poultry, dairy and ethanol industries. The interests of Indian farmers will also not be affected. Currently, India imports about 5 lakh tonnes of maize from America annually.
America wants to sell premium cheese in India
According to the report, India has clearly told the American side that the current 15% tax on non-GM maize will not be reduced. America is pressurizing India to give entry to premium cheese (paneer) also, but India is not ready on this at present.
Let us tell you that Trump has imposed a total of 50% tariff on India in April by imposing a penalty of 25% and then 25% on crude oil taken from Russia. India currently imports 34% of its crude oil needs from Russia, while 10% from the US.
Deal stuck till now due to Trump’s ego
Former Foreign Secretary Kanwal Sibal said that India-US trade deal is on Trump’s table. India will not compromise with its domestic interests, but gives importance to America as a trading partner. The problem is with Trump’s ego. Trump criticized EU, Japan and South Korea. He has made a trade deal by putting pressure on Korea, he wanted the same with India, but Trump knows that this is not easy, hence he is adopting a hot-cold attitude with India.
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