NEW DELHI: After failure of the RCEP talks, the Government is caught in a quandary over the Indo-US trade negotiations which are near being finalized as voices of protest have started emerging against the deal which could see import duty being slashed not only for Harley Davidson motorcycles, which US President Donald Trump made a cause célèbre and American Whiskey but also the humble chicken leg.
US consumers prefer Chicken breasts and wings to legs and American poultry industry has for long been shipping chicken legs to the world. India, where consumers love their 'murgi ka tangri' (chicken leg) kebabs had tried to halt the march of American chicken legs in 2007 by banning US poultry as a safeguard against the spread of avian flu.
After a successful win by the US in a protracted WTO case, India allowed American chicken products to be imported but at a 100 per cent duty. However, now as part of the Indo-US trade negotiations currently underway, the Government is believed mulling a proposal to slash duty to a more reasonable 30 per cent.
Dr G. Ranjith Reddy, President, Telangana Poultry Breeders Association in a statement said “This reduction in customs duty will not only destroy Indian Poultry Industry but also the Soybean and Maize Growers as well because, as the Poultry is the main consumer for Maize and Soya meal.”
Top Commerce Ministry officials said that a preliminary trade deal has been 'almost' hammered out between the US and Indian sides which will involve a trade-off between US restoring GSP benefits for Indian exports and India opening up to imports from the US including medical devices and agricultural goods as well as reduction of tariff on high value information technology imports.
US had earlier this year withdrawn preferential tariff treatment to more than 2,000 kinds of products worth some $ 6 billion which India was exporting to America, complaining of unfair trade practices by India including higher duties by India among other issues. India had in a tit-for-tat move also raised duties on some US products including a number of farm products.