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US-India trade hits roadblock over GM commodities exports
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Friday, 27 June, 2025, 08 : 00 AM [IST]
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Ashwani Maindola, New Delhi
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The US India trade negotiations have hit a roadblock over agricultural commodities export from USA, which includes genetically-modified commodities.
It is learnt that the Indian side has resisted the US proposal of lowering of tariff on American agri produce such as maize and soybean, citing health concerns related to GM farm produce. US maize and soya are genetically modified crops and in India there is a ban on such GM products.
Indian officials resisted the US move citing ‘non-readiness’ in India for ‘large US farms’ products while US was keen in pushing for lower tariffs on US GM maize and soya.
The two sides have set July first week deadline for a limited deal but since no agreement was reached as yet, the July 9 deadline is likely to be breached and 26% tariff would be levied on products exported from India while there would be a reciprocal tariff on US export to india.
The Indian side was hoping for a zero tariff deal on various Indian products like pharmaceuticals, textiles, auto parts and farm produce among others. However, the American side wanted the deal without a ‘zero tariff’ clause.
Meanwhile, the continuous rant from US President Donald Trump about brokering a peace deal during Operation Sindoor has also put a damper on the negotiations.
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