Maize, soybean high on the radar of US for BTA with India
India–US trade talks hinge on India’s stance on genetically modified (GM) crops, as the US seeks market access for maize and soyabean. While India may ease duties on select US goods, GM imports remain undecided. With China reducing US crop imports, India could be a key alternative—pending a policy decision. The bilateral trade agreement is expected by September.
Though facilitation of maize and soyabean imports from the US is among major demands before India as both countries have started negotiation for a bilateral trade agreement, any concession may have to wait until the government takes a policy decision with regard to allowing import of genetically modified (GM) crops, sources said. India, however, may offer concessional duty in the BTA for import of some agri-related items such as apple, cherry, pecan nuts, whisky of the US, the sources said.
US-China stand-off
On the other hand, amid the continuing stand-off between US and China on tariffs, experts said that while China can find alternative sourcing destinations in Brazil, Argentina for its maize and soyabean requirement, the US may find difficulties selling those two crops in an alternative market if China shifts due to high tariff.
In 2023, China imported 7.14 million tonnes of corn from the US, which is 26 per cent of its total corn imports, according to ITC trade data. Similarly, China’s soyabean imports from the US were 26.6 million tonnes, which is 27 per cent of its total soyabean imports exceeding 100 mt.
On the other hand, US corn export to China has 16 per cent share in its total export of the grain estimated at 46 mt, which experts said can be found in alternative markets such as India, provided the GM issue is settled. But, the issue of soyabean will be a big concern since the share of US exports to China was 55 per cent of total soyabean shipments in 2023.
Wait for BTA
Meanwhile, the government has asked agri exporters to wait for the BTA and till then there may not going to be any major further change, sources said.
The US has temporarily rolled back its decision for 90 days to impose the controversial reciprocal tariff against countries other than China after it created a global turmoil, potentially with far-reaching consequences.
“There is no such major impact on agri commodity prices globally after the US first imposed the reciprocal tariff. However, even before it was announced, India had already initiated the discussion for a BTA and is hopeful of achieving it before September,” an official source said. The US has already shared a list of items where it wants India to allow duty-free import, as there is no import duty levied for most of the Indian agri products in the US, he added.
Refusing to share the list of items, he said those are very sensitive issues and unless finalised should not be disclosed.
But, trade sources said that there is pressure to open up corn and soyabean imports and the government will take a call based on India’s interest. The sources also pointed out that since soyabean oil made from GM-crop has already been allowed for the last many years, the government should designate some processing plants to import if GM-soyabean is allowed so that the crop does not contaminate with other produce of India.
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Source : The Hindu Business line
