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Sensitive agriculture and dairy sectors excluded from U.S. trade deal, says Commerce Minister Piyush Goyal

Sensitive agriculture and dairy sectors excluded from U.S. trade deal, says Commerce Minister Piyush Goyal

Union Commerce and Industry Minister Piyush Goyal on Tuesday made it clear that sensitive sectors such as agriculture and dairy have been excluded from the scope of the recently announced India-U.S. trade deal, reaffirming the government’s priority to protect domestic farmers and producers. Goyal described the trade agreement as a “farmers-first” deal, emphasising that while various sectors stand to benefit from improved market access and lower tariffs, key areas such as farming and dairy will continue to be shielded from any compulsory market opening under the pact.

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Addressing reports and opposition criticism over the pact’s impact on agriculture, Goyal stressed that the terms of the agreement were designed with sensitivity to India’s economic and social priorities, ensuring that farmers’ interests are preserved and not compromised by liberalisation pressures. He underscored that protecting sectors tied to rural livelihoods, food security and cultural practices remained central to the government’s negotiating stance throughout discussions with U.S. counterparts.

The decision to exclude agriculture and dairy from the trade deal aligns with India’s longstanding strategy of maintaining safeguards for sectors critical to employment and sustenance, even as other parts of the economy seek greater integration into global supply chains. Analysts say this move will reassure rural stakeholders and shield domestic producers from potential competitive pressures arising from duty eliminations or lowered tariff barriers.

Goyal’s comments came amid heightened political interest in the trade agreement, which also includes provisions for tariff reductions on a wide range of industrial and export-oriented goods. While exporters and market participants have welcomed the broader deal for boosting trade flows and market access, the exclusion of sensitive agriculture and dairy segments reflects India’s cautious approach to balancing trade liberalisation with protection of its large farming and livestock sectors.

Opposition parties have been vocally seeking clarity on the deal’s implications for farmers and consumers, prompting government officials to reiterate that core rural sectors will not be adversely affected, even as the pact aims to strengthen bilateral trade and economic ties. 

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