Piyush Goyal Hails Protection Of Farmers' Interest Via India-US Interim Trade Pact - Key Details

After the India-US issued a joint statement detailing the top points and key highlights of the India-US trade agreement, Union Minister of Commerce and Industry Piyush Goyal hailed it as a win for the South Asian nation's farmers, fishing community, and MSME's.

As part of the framework for an "Interim Agreement" between both nations, the 50% tariffs levied on India by the US has now been lowered to 18%.

The Union Minister Piyush Goyal said this day will be written in "golden words" as it opens up new opportunities via preferential access to the US market, totalling $30 trillion.

Also Read: India-US Interim Trade FAQs: Why US Agreed To Slashing Tariffs To 18%?

Speaking about the protection of farmers interest, Goyal noted that zero duty products now include spices, tea, coffee and its by products, coconut, coconut oil, cashew nuts, chest nuts, fruits, and vegetables among others.

On the other hand, the US tariffs have been reduced to zero on agricultural products like avocados, guava, mango, chivvy, pineapple, mushroom, vegetable roots, cereals like barley, bakery goods, sesame seeds, processed fruits, and guava paste.

According to the Indo-US joint statement released on Friday, February 6, the "United States will apply a reciprocal tariff rate of 18 percent, on originating goods of India", including "textile and apparel, leather and footwear, plastic and rubber, organic chemicals, home décor, artisanal products, and certain machinery."

On the other hand, India will also "receive a preferential tariff rate quota for automotive parts subject to the tariff imposed to eliminate threats to national security found in Proclamation 9888 of May 17, 2019."

Meanwhile, Goyal said that zero duty would be imposed on aircrafts parts, machinery, generic drugs, diamonds, platinum, watches, essential oil, home decors. lamps parts, aluminum oxide, plastic goods, inorganic compounds, mineral and natural resources, among other goods.

Taking to X earlier, he noted, "the Agreement reflects India’s commitment to safeguarding farmers’ interests and sustaining rural livelihoods by completely protecting sensitive agricultural and dairy products, including maize, wheat, rice, soya, poultry, milk, cheese, ethanol(fuel), tobacco, certain vegetables, meat, etc.”

Further, both nations have also agreed upon establishing rules of origin that ensure that the benefits of the agreement accrue predominately to the United States and India. 

On the framework for an Interim Trade Agreement between both countries, PM Narendra Modi earlier noted, "It strengthens ‘Make in India’ by opening new opportunities for India’s hardworking farmers, entrepreneurs, MSMEs, StartUp innovators, fishermen and more. It will generate large-scale employment for women and youngsters."