India and US Reach Interim Trade Agreement Impacting Agricultural Imports
India and the United States have announced an interim bilateral trade agreement focusing on agricultural imports. The agreement does not open India's market to imports of soyabean, corn, fuel ethanol, cotton, or dairy and poultry products from the US. Instead, India will grant greater market access by reducing tariffs on other American farm products such as Distiller’s Dried Grains with Solubles (DDGS), soyabean oil, red sorghum for animal feed, tree nuts, fresh and processed fruits, wine, and spirits. The agreement aims to benefit India's livestock sector by providing cheaper and better-quality DDGS from the US, which is derived from genetically modified corn. The US is a major producer and exporter of corn, ethanol, and DDGS, and the agreement could impact Indian soyabean farmers and the processing industry due to potential changes in domestic realizations on soyabean DOC and oil.