Congress leader Jairam Ramesh flags 'withdrawal' of NITI Aayog's working paper on Indo-U.S. trade

The Hindu

2 days ago

Congress leader Jairam Ramesh claimed on Monday (June 30, 2025) that government think-tank NITI Aayog has withdrawn a working paper on Indo-U.S. agriculture trade relations.
He claimed that the NITI Aayog paper called for allowing duty-free import of genetically-modified (GM) maize and soyabean from the United States, and alleged that the Narendra Modi government prioritises Midwestern American farmers over their counterparts in states, such as Madhya Pradesh, Bihar and Rajasthan.
The NITI Aayog had, in a working paper titled "Promoting India-US Agricultural Trade Under the New US Trade Regime", suggested that in the aftermath of "reciprocal tariffs" imposed by the U.S., India should adopt a dual-track approach and selectively reduce the high tariffs on non-sensitive agricultural commodities' imports from Washington, while also strategically offering concessions where domestic supply gaps exist.
"This was the NITI Aayog Working Paper on Promoting India-US Agricultural Trade Under the New US Trade Regime that was officially issued on May 30, 2025, but taken off the website a few days later and is now officially withdrawn," Mr. Ramesh said in a post on X.
In another post, he claimed that the NITI Aayog paper called for allowing duty-free import of GM maize and soyabean from the U.S.
"For the Modi sarkar, the interests of Midwestern American farmers and large Multinational Corporation traders are bigger than that of the maize farmers of Bihar and soyabean farmers of MP, Maharashtra, and Rajasthan," he alleged.
Who authorised the release of the paper and is this a preview of the forthcoming Indo-U.S. trade agreement, the former Union Minister asked.
When contacted, a NITI Aayog spokesperson did not offer any comment.
The working paper had noted that the sudden announcement of "reciprocal tariffs" and enhanced market access for US exports, following Donald Trump's re-election as the U.S. President in January, has sent shockwaves across the world, especially among the trading partners of America.
"India can also strategically offer concessions where domestic supply gaps exist, such as in edible oils and nuts," the paper had suggested.
Noting that India is the largest importer of edible oil in the world and the U.S. has a huge export surplus of soyabean, which is GM, the paper had said India can offer some concession to the U.S. in the import of soyabean oil to meet demands in that country and reduce the trade imbalance, without harming domestic production.
The paper had also suggested that India should negotiate more access to the U.S. market for high-performing exports like shrimp, fish, spices, rice, tea, coffee and rubber. India earns approximately $5.75 billion annually from agri-exports to the U.S. Expanding this through duty waivers or TRQs should be part of trade talks.
Meanwhile, India has hardened its position on issues related to agriculture as negotiations with a US team in Washington have entered a crucial stage, an official said on Monday.
The official also said that the stay of the Indian team, headed by Special Secretary in the Department of Commerce Rajesh Agrawal, is likely to be extended further.
The team is in Washington for negotiations on an interim trade agreement with the U.S. Both sides are rushing to close a deal ahead of the July 9 deadline for the full implementation of the 26% reciprocal tariff, which has been suspended since April.
"If the proposed trade talks fail, the 26% tariffs will come into force again," the official added.
The stay of the Indian officials was already extended by three days till June 30. Initially, the delegation was scheduled to spend two days in the U.S., with the talks having commenced on June 26.
Another official said the Commerce Ministry has informed domestic exporters and industry that talks are on for the first phase of the proposed bilateral trade agreement.
There would be more phases.
These talks are significant as both countries are engaged in negotiations for an interim trade deal and are trying to finalise the pact before July 9, the deadline for the expiry of the suspension of the reciprocal tariffs imposed by the Trump administration on April 2.
On April 2, the U..S imposed an additional 26% reciprocal tariff on Indian goods but suspended it for 90 days. However, the 10% baseline tariff imposed by the US remains in place. India is seeking full exemption from the additional 26% tariff.
The U.S. is demanding duty concessions in the agriculture and dairy sectors.
But these segments are difficult and challenging areas for India to give duty concessions to the US as Indian farmers are into sustenance farming and have small land holdings.
Therefore, these sectors are politically sensitive as well.
India has not opened up the dairy sector for any of its trading partners in any free-trade pacts it has signed so far.
The US wants duty concessions on certain industrial goods, automobiles, especially electric vehicles, wines, petrochemical products, dairy and agricultural items like apples, tree nuts and GM crops.
India is seeking duty concessions for labour-intensive sectors like textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes and bananas in the proposed trade pact.
The two countries are also looking to conclude talks for the first tranche of the proposed bilateral trade agreement (BTA) by fall (September-October). The pact is aimed at more than doubling the bilateral trade to $500 billion by 2030 from the current $191 billion.
Before the first tranche, they are trying for an interim trade pact.
The U.S. team was here from June 5 to June 11 for the talks. The negotiations will continue both virtually and physically in the days to come.
India's merchandise exports to the U.S. rose by 21.78% to $17.25 billion in April-May this fiscal, while imports rose by 25.8 per cent to $8.87 billion.