NEW DELHI: A US trade delegation is slated to come here next week or in the first week of December to try and sort out America’s trade spat with India.
However, officials said that despite their having been given a deadline of mid-December ahead of the two-plus-two talks, in which India’s ministers for defence and external affairs hold strategic talks with US secretaries for state and defence, to finalise a deal, “in reality, differences still exist and it will take backbreaking work to narrow them.”
The official word so far has been that differences have been reduced and a provisional deal was within reach. However, officials said differences over India opening up its market for US farm goods, including poultry and dairy products, persisted, as did differences over Indian standards.
Sources said Indian negotiators were under contrary pressures – one set to do a deal and another to protect certain sectors, which include farm produce and dairy.
“The Americans want the optics to be right. They have a presidential election coming next year. They want to showcase trade gains for farmers and the US industry. It’s not how much imports they win but the optics of a ‘good deal’,” an official said.
The problem is that several sectors, such as small businesses, retailers and the farm sector in India too are vocal and any attempt to give the Americans some leeway is immediately opposed by these sectors.
“The poultry and dairy sectors, among others, have been very vocal. An attempt to reduce tariffs on American poultry imports has been resisted tooth and nail by Indian poultry breeders,” an official pointed out.
Similarly, milk federations have been opposing opening up of the dairy sector, something which the Americans, as well as New Zealand, want.