India-US trade deal: India and the United States are engaged in detailed negotiations to finalise a trade agreement before July 9, when US President Donald Trump’s tariff deadline kicks in. The two countries are seeking compromise on several sensitive issues, particularly India’s market access for genetically modified (GM) crops.A new proposal under consideration suggests implementing a ‘self-certification’ system for American exporters to address India’s requirements regarding GM-free/non-GMO status of imported products whilst streamlining the process, sources told ET.The arrangement would require the United States to provide an updated catalogue of food crops where ‘no GM event’ has been authorised. Additionally, the US would need to furnish an online resource detailing food crops with authorised GM events, helping Indian authorities make informed decisions about imports.Also Read | Donald Trump’s tariff wars: US announces trade deal with Vietnam; is India next? Why China should be worriedA GM event specifically denotes the introduction of foreign DNA into a plant’s genetic material to alter its characteristics.
India-US Trade Deal: GM Crop Issue
- India’s 2021 regulation on GM crops mandates that imports of 24 specified items including grains, oilseeds, fruits, and vegetables must be accompanied by a GM free/non-GMO certificate, comprising a health certificate and additional validation from the country of export.
- The United States has expressed concerns about the comprehensive regulation, describing it as a significant trade impediment, noting that it fails to consider whether genetically engineered variants of the specified 21 food items are actually in production or being exported to India.
- Trade representatives from both nations continue discussions regarding the ongoing matter of permitting US genetically modified animal feed imports.
- Whilst negotiations for allowing US GM Alfalfa hay into India remain slow-moving at the Department of Animal Husbandry, sources indicate potential progress on authorising imports of US corn-derived genetically engineered Dried Distilled Grains (DDGs).
- Sources told the financial daily that India has suggested that following the submission of necessary technical documentation by US authorities, it will endeavour to evaluate the phytosanitary requirements for GE DDGS imports within a six-month timeframe, in accordance with Indian regulations.
- The United States maintains that DDGS, being a processed product, presents no environmental risks and should not be classified under the GM framework as living modified organisms.
Certification & Registration for ‘High Risk’ Imports
Extensive discussions are ongoing regarding India’s regulatory framework for ‘certification’ and ‘registration’ of specific ‘high risk’ imports, encompassing dairy products, meat and meat products, poultry, fish and infant food items.The United States has expressed concerns about the complexity of certificate requirements, citing multiple and redundant attestation processes.Also Read | US plans ‘economic bunker buster’ bill: Will Donald Trump impose 500% tariff on countries importing oil from Russia? How it may impact IndiaIndia, whilst emphasising the importance of food safety protocols, has initiated discussions to provide sufficient transition periods for implementing new certification systems for food and agricultural products. Additionally, they aim to complete discussions on these modifications within an acceptable timeline.Furthermore, India maintains its stance on the necessity of registering US food manufacturing facilities. However, they are considering a provision allowing direct self-registration applications to the Food Safety & Standards Authority of India (FSSAI) for export purposes. The proposal suggests that any irregularities discovered would require bilateral resolution.
