India and US Trade Deal: India Seeks Compromise While Considering GM-Free Options
India and the United States are currently engaged in intensive negotiations to finalize a trade agreement ahead of a crucial tariff deadline set for July 9. The discussions focus on several contentious issues, particularly concerning India’s market access for genetically modified (GM) crops. A new proposal under consideration aims to introduce a ‘self-certification’ system for American exporters, which would address India’s requirements regarding GM-free imports while simplifying the overall process.
Negotiations on GM Crop Regulations
The ongoing trade talks between India and the United States have brought the issue of genetically modified crops to the forefront. India’s regulations, established in 2021, require that imports of 24 specific items—including grains, oilseeds, fruits, and vegetables—be accompanied by a GM-free or non-GMO certificate. This certificate must include a health certificate and additional validation from the exporting country. The United States has raised concerns about these stringent regulations, arguing that they pose significant trade barriers. They contend that the regulations do not take into account whether genetically engineered variants of the specified food items are currently being produced or exported to India.
Trade representatives from both nations are also discussing the importation of US genetically modified animal feed. While progress on allowing US GM Alfalfa hay into India has been slow, there are indications that the two sides may soon reach an agreement on the import of genetically engineered Dried Distilled Grains (DDGs) derived from corn. According to sources, India has proposed that once the necessary technical documentation is submitted by US authorities, it will assess the phytosanitary requirements for GE DDGS imports within a six-month period, in line with Indian regulations. The US maintains that DDGS, being a processed product, should not be classified under the GM framework as living modified organisms.
Certification and Registration Challenges
Extensive discussions are underway regarding India’s regulatory framework for the certification and registration of specific ‘high-risk’ imports. This category includes dairy products, meat and meat products, poultry, fish, and infant food items. The United States has expressed concerns about the complexity of the certification requirements, highlighting the presence of multiple and redundant attestation processes.
In response, India has emphasized the importance of maintaining food safety protocols while also initiating discussions to provide adequate transition periods for implementing new certification systems for food and agricultural products. Indian officials aim to finalize these discussions within a reasonable timeframe. Furthermore, India insists on the necessity of registering US food manufacturing facilities. However, they are considering a provision that would allow for direct self-registration applications to the Food Safety and Standards Authority of India (FSSAI) for export purposes. The proposal includes a mechanism for addressing any irregularities that may arise, requiring bilateral resolution.
Future Prospects for Trade Relations
As the deadline for the tariff negotiations approaches, both India and the United States are under pressure to reach a consensus that satisfies the interests of both nations. The proposed self-certification system for American exporters could streamline the import process while addressing India’s concerns about GM products. This potential compromise reflects a willingness from both sides to find common ground amid ongoing trade tensions.
The outcome of these negotiations could have significant implications for future trade relations between the two countries. A successful agreement may pave the way for increased trade volumes and enhanced economic cooperation. Conversely, failure to reach a consensus could exacerbate existing trade barriers and hinder the growth of bilateral trade. As discussions continue, stakeholders from both nations remain hopeful for a resolution that balances regulatory concerns with the need for open trade.
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