US slams India's high farm tariffs, seeks more dairy market access

It said India's World Trade Organization (WTO) bound tariff rates on agricultural products are among the highest in the world, averaging 113.1 per cent and ranging as high as 300 per cent

The US has once again slammed India for high tariffs on agricultural products and non-tariff restrictions to market access and has sought greater access to India’s dairy market for its products.   

 

In the latest annual report on foreign trade barriers, the US Trade Representative (USTR) said that India maintains high tariffs on a wide range of goods that include vegetable oils (45 per cent); apples, corn, and motorcycles (50 per cent); automobiles and flowers (60 per cent); natural rubber (70 per cent); coffee, raisins, and walnuts (100 per cent); and alcoholic beverages (150 per cent). 

 

“High tariff rates also present a significant barrier to trade in other agricultural goods and processed foods (for example, poultry, potatoes, citrus, almonds, pecans, apples, grapes, canned peaches, chocolate, cookies, frozen french fries, and other prepared foods used in fast-food restaurants),” the report said.

 

 

It added that India’s World Trade Organization (WTO) bound tariff rates on agricultural products are among the highest in the world, averaging 113.1 per cent and ranging as high as 300 per cent.

 

The USTR’s concerns are almost the same as they were in the last report tabled in 2024 except for the fact that trade negotiations between India and the US have reached a critical stage and the threat of reciprocal tariffs looming large has further underscored the criticality of the findings.

 

The USTR report said that given the large disparity between the WTO bound and applied rates, India has considerable flexibility to change tariff rates for both agricultural and non-agricultural products at any time, creating tremendous uncertainty for US workers, farmers, ranchers, and exporters.

 

The report also raised concerns about India’s biotechnology approval process that hinders the registration of genetically-engineered (GE) products in the Indian market.

 

“India’s biotechnology approval processes are slow, opaque, and subject to political influences and do not appear to take into account science-based approval processes for GE products in exporting countries,” the report said.

 

It also said that though India has set an ambitious target of blending petrol with ethanol, it continues to prohibit importing ethanol for use as fuel.

 

The report further said that on the critical issue of allowing import of dairy products into India, the US government has continued to press India to provide greater access to the dairy market for US products.