‘Unnecessary trade barriers…’: US hits out at India’s dairy certificate requirements at WTO; raises issue amidst trade deal talks
Even as India and the US appear to be in the final leg of talks for an interim trade deal, America has raised issues of India’s dairy certificate requirement at the World Trade Organisation (WTO) again. The US has expressed fresh concerns at the WTO regarding India’s dairy certification requirements, labelling them as unnecessary obstacles for American dairy exports.These apprehensions surface whilst both nations are engaged in trade agreement discussions, with India maintaining its stance against opening up its dairy and agricultural sectors.This matter might be addressed during India’s eighth trade policy evaluation at the WTO, scheduled for this year, according to an ET report. The previous evaluation was conducted in 2021.
US Objection: What Are India’s Dairy Certificate Requirements?
- India requires a comprehensive veterinary health certificate for milk and milk product imports, which must verify the absence of drugs, antibiotics, pesticides and heavy metal residues.
- The US has expressed apprehension regarding India’s certification prerequisites, viewing them as unnecessary obstacles for American dairy products entering the Indian market.
- For exports to India, the comprehensive certificate must be validated by the respective authority of the exporting nation.
- At the WTO, the United States emphasised that such requirements ought to be scientifically grounded and minimally restrictive to trade. This matter was previously brought up by them in April this year.
- The United States indicated that India’s revised dairy certification, effective November 2024, fails to address their existing concerns.
- The US administration emphasised that such regulatory measures ought to be grounded in scientific evidence and risk assessment to ensure appropriate public health safeguards.
India-US WTO Tiff
Dairy is not the only issue on which India and the US are sparring at the WTO. In response to US duties on steel and aluminium implemented as ‘safeguard measures’, India has put forward retaliatory tariffs against the United States, adhering to WTO guidelines.Also Read | India takes strong stand! Retaliatory tariffs planned against US on steel and aluminium at WTO amidst trade deal talks; check detailsFollowing the US implementation of steel and aluminium tariffs as safeguard measures, India proposed countermeasures in May, targeting specific American products within the WTO framework. India’s notification to the WTO indicated that these measures would affect US imports valued at $7.6 billion.“The safeguard measures would affect $7.6 billion imports into the United States of the relevant products originating in India, on which the duty collection would be $3.82 billion,” India told the WTO.India has also recently indicated its intention to implement countermeasures against US automotive tariffs.Last week, India formally notified its position at WTO to levy reciprocal duties on the United States, following the latter’s imposition of 25% tariff on Indian automotive components. India’s proposal at the World Trade Organisation (WTO) categorises the US tariff action as a “safeguard measure”. According to a WTO circular, India has indicated its authority to increase duties on specific US products as a response.A government representative told PTI that this action, which aligns with WTO safeguard provisions, will not affect the ongoing trade negotiations between both nations.Also Read | Donald Trump reiterates warning! BRICS countries, including India, to be charged 10% additional tariffs; US President says group is ‘trying to destroy dollar’
India-US Trade Deal: What’s Happening?
In the meantime, India and the US are working to finalise an interim trade deal at the earliest. US President Donald Trump has revised the deadline to implement the reciprocal tariffs to August 1, 2025. Trump has so far sent tariff letters to over 20 countries. However, India is not on the list. In fact, earlier this week Trump indicated that the US is nearing a trade deal with India.Officials are continuing discussions on the India-US trade agreement, with negotiators planning to visit Washington soon. The government aims to conclude a comprehensive agreement without time constraints. An official clarified, “We are not differentiating between an interim or the first phase of the bilateral trade agreement. We are negotiating a complete deal. Whatever will be finalised, we can package it as an interim deal, and for the rest, talks will continue.” Although President Trump and PM Modi had initially targeted finalising the deal by September-October this year, the introduction of reciprocal tariffs led to considerations of a smaller agreement. The end of the month serves as the latest opportunity to extend concessions in areas significant to the US. Agricultural products, American whiskey, and automobiles are key priorities for the US, though India remains hesitant about reducing agricultural tariffs. Commerce minister Piyush Goyal has emphasised that the government will prioritise India’s interests over meeting deadlines.Also Read | India-US trade deal: What’s the deadlock about? Top issues blocking agreement as Donald Trump’s 26% tariff deadline looms
