The United States is intensifying trade negotiations with India, as revealed by US Trade Representative Jamieson Greer during a Senate Appropriations subcommittee hearing.

Greer described India's latest proposals as "the best we've ever received as a country," particularly in expanding market access for American agricultural products such as grain sorghum and soy. This marks a significant shift in what has historically been a challenging market for US exporters.

A USTR team is currently in New Delhi, actively addressing sensitive agricultural barriers. Greer acknowledged resistance in India to certain row crops but emphasised that the proposals are "quite forward-leaning."

He portrayed India as a viable alternative market for US commodities, especially amid surplus inventories and fluctuating demand from China.

Committee Chair Jerry Moran voiced concerns over shrinking export options for Kansas farmers, who face dependence on China. Moran described India as "such a difficult country to crack," prompting Greer to highlight progress beyond previous administrations. This diplomatic and commercial outreach aims to diversify destinations and stabilise US agricultural exports.

Greer framed India's engagement within a broader US strategy to reorient global trade relationships, reducing deficits and securing reciprocal access. He noted parallel market openings in Southeast Asia and Europe, which bolster Washington's leverage with partners like India. These efforts promise farmers "structural constant access" to new markets.

Discussions extend beyond agriculture to sectors including civil aviation. Greer indicated advanced talks on the 1979 Aircraft Agreement, which involves zero-tariff commitments for parts. He suggested extensions could apply if India reciprocates with fair market access for the United States.

Moran spotlighted India's potential as a major buyer of US corn- and soy-derived ethanol. While Greer did not elaborate specifically, he pointed to successes elsewhere, such as other countries opening markets for US ethanol.

He also cited the European Union's commitment to purchase $750 billion in US energy products, including biofuels, over several years.

Senators raised alarms about pressures on American farmers from volatile tariffs and shifting Chinese demand. Greer defended the administration's aggressive negotiation tactics, including tariffs, as key to enforcement and market unlocking. He argued that trading partners "respond to enforcement," driving compliance on tariffs, regulatory barriers, and even FDA acceptance for medicines.

India-US trade ties have expanded markedly over the past decade, with negotiations spanning agriculture, digital services, aviation, pharmaceuticals, and critical minerals. India ranks as one of America's fastest-growing export destinations, despite persistent agricultural tariff and sanitary restrictions.

These talks have gained momentum following the US-India Strategic Trade Dialogue and frameworks tied to the Indo-Pacific Economic agenda. Both nations pursue supply-chain diversification and deeper commercial integration amid geopolitical shifts. This positions the negotiations as a cornerstone of evolving bilateral economic relations.

Greer's testimony underscores a pivotal moment, where India's concessions could reshape US agricultural exports and set precedents for broader sector access. The emphasis on reciprocity signals a robust US approach, potentially yielding long-term gains for exporters while navigating India's domestic sensitivities. Ongoing dialogues in New Delhi will determine if these "best offers ever" translate into binding agreements.

Based On TOI Report