Now Reading: ‘Unnecessary trade barriers…’: US hits out at India’s dairy certificate requirements at WTO; raises issue amidst trade deal talks
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‘Unnecessary trade barriers…’: US hits out at India’s dairy certificate requirements at WTO; raises issue amidst trade deal talks
‘Unnecessary trade barriers…’: US hits out at India’s dairy certificate requirements at WTO; raises issue amidst trade deal talks
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Even as India and the US seem like within the ultimate leg of talks for an interim trade deal, America has raised problems with India’s dairy certificate requirement at the World Trade Organisation (WTO) once more. The US has expressed recent considerations at the WTO concerning India’s dairy certification requirements, labelling them as pointless obstacles for American dairy exports.These apprehensions floor while each nations are engaged in trade settlement discussions, with India sustaining its stance towards opening up its dairy and agricultural sectors.This matter is likely to be addressed throughout India’s eighth trade coverage analysis at the WTO, scheduled for this yr, in accordance with an ET report. The earlier analysis was carried out in 2021.
US Objection: What Are India’s Dairy Certificate Requirements?
- India requires a complete veterinary well being certificate for milk and milk product imports, which should confirm the absence of medicine, antibiotics, pesticides and heavy steel residues.
- The US has expressed apprehension concerning India’s certification conditions, viewing them as pointless obstacles for American dairy merchandise getting into the Indian market.
- For exports to India, the great certificate should be validated by the respective authority of the exporting nation.
- At the WTO, the United States emphasised that such requirements should be scientifically grounded and minimally restrictive to trade. This matter was beforehand introduced up by them in April this yr.
- The United States indicated that India’s revised dairy certification, efficient November 2024, fails to handle their present considerations.
- The US administration emphasised that such regulatory measures should be grounded in scientific proof and threat evaluation to make sure applicable public well being safeguards.
India-US WTO Tiff
Dairy isn’t the one issue on which India and the US are sparring at the WTO. In response to US duties on metal and aluminium applied as ‘safeguard measures’, India has put ahead retaliatory tariffs towards the United States, adhering to WTO tips.Also Read | India takes robust stand! Retaliatory tariffs deliberate towards US on metal and aluminium at WTO amidst trade deal talks; examine particularsFollowing the US implementation of metal and aluminium tariffs as safeguard measures, India proposed countermeasures in May, focusing on particular American merchandise throughout the WTO framework. India’s notification to the WTO indicated that these measures would have an effect on US imports valued at $7.6 billion.“The safeguard measures would affect $7.6 billion imports into the United States of the relevant products originating in India, on which the duty collection would be $3.82 billion,” India advised the WTO.India has additionally just lately indicated its intention to implement countermeasures towards US automotive tariffs.Last week, India formally notified its place at WTO to levy reciprocal duties on the United States, following the latter’s imposition of 25% tariff on Indian automotive parts. India’s proposal at the World Trade Organisation (WTO) categorises the US tariff motion as a “safeguard measure”. According to a WTO round, India has indicated its authority to extend duties on particular US merchandise as a response.A authorities consultant advised PTI that this motion, which aligns with WTO safeguard provisions, is not going to have an effect on the continued trade negotiations between each nations.Also Read | Donald Trump reiterates warning! BRICS international locations, together with India, to be charged 10% further tariffs; US President says group is ‘trying to destroy dollar’
India-US Trade Deal: What’s Happening?
In the meantime, India and the US are working to finalise an interim trade deal at the earliest. US President Donald Trump has revised the deadline to implement the reciprocal tariffs to August 1, 2025. Trump has to this point despatched tariff letters to over 20 international locations. However, India isn’t on the record. In reality, earlier this week Trump indicated that the US is nearing a trade deal with India.Officials are persevering with discussions on the India-US trade settlement, with negotiators planning to go to Washington quickly. The authorities goals to conclude a complete settlement with out time constraints. An official clarified, “We are not differentiating between an interim or the first phase of the bilateral trade agreement. We are negotiating a complete deal. Whatever will be finalised, we can package it as an interim deal, and for the rest, talks will continue.” Although President Trump and PM Modi had initially focused finalising the deal by September-October this yr, the introduction of reciprocal tariffs led to issues of a smaller settlement. The finish of the month serves as the newest alternative to increase concessions in areas vital to the US. Agricultural merchandise, American whiskey, and vehicles are key priorities for the US, although India stays hesitant about lowering agricultural tariffs. Commerce minister Piyush Goyal has emphasised that the federal government will prioritise India’s pursuits over assembly deadlines.Also Read | India-US trade deal: What’s the impasse about? Top points blocking settlement as Donald Trump’s 26% tariff deadline looms
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