The government on Monday said tariffs on imports of several agricultural and intermediate products from the US will be phased out over a period of up to ten years under the India-US trade agreement. This would provide "adequate adjustment space for domestic players", it said.
These products include albumins, oils such as coconut oil, castor oil and cottonseed oil, hoofmeal, lard, stearin, modified starches, peptones and their derivatives, and plants and parts of plants, among others.
"Phased elimination of tariffs over up to ten years has been adopted for certain intermediate products used by India's food processing industry and sourced from multiple countries," the government said in a statement.
It said the offer is categorised into immediate duty elimination, phased elimination (up to 10 years), tariff reduction, margin of preference and tariff rate quota mechanisms. "Additional structural duty relief ensures zero reciprocal duty access for $1.04 billion under the exemption category," the statement said. "Within this, agricultural products valued at $1.035 billion have been assured zero reciprocal tariff by the US."
According to the government, "this provides stability and predictability for Indian agricultural exporters and ensures that key farm products continue to enjoy uninterrupted market access". It said highly sensitive agricultural sectors, including meat, poultry and dairy products, GM food products, soyameal, maize and cereals, remain fully protected under a carefully crafted exemption category.
For select sensitive agricultural products such as parts of plants, olives, pyrethrum and oil cakes, the tariff reduction category has been applied to ensure that a measured level of duty protection continues.
In-shell almonds, walnuts, pistachios and lentils, are some "highly sensitive items" which have been liberalised under tariff rate quotas (TRQs) where "limited quantities are allowed at reduced duties".
Immediate duty elimination has been offered only for select non-sensitive products that are already liberalised under other FTAs, it said.
"Sensitive sectors such as automobiles have been liberalised through a combination of quota and duty reduction mechanisms. Medical devices have been addressed through long and staggered phasing schedules," the government said, adding that alcoholic beverages have been offered under tariff reduction along with minimum import price under the trade pact.
While the agreement secures zero additional duty access for industrial exports worth $38 billion, market access for American industrial goods has been structured strictly on the basis of product sensitivity, combining immediate tariff elimination, phased reduction (up to ten years) and quota-based access.
These products include albumins, oils such as coconut oil, castor oil and cottonseed oil, hoofmeal, lard, stearin, modified starches, peptones and their derivatives, and plants and parts of plants, among others.
"Phased elimination of tariffs over up to ten years has been adopted for certain intermediate products used by India's food processing industry and sourced from multiple countries," the government said in a statement.
It said the offer is categorised into immediate duty elimination, phased elimination (up to 10 years), tariff reduction, margin of preference and tariff rate quota mechanisms. "Additional structural duty relief ensures zero reciprocal duty access for $1.04 billion under the exemption category," the statement said. "Within this, agricultural products valued at $1.035 billion have been assured zero reciprocal tariff by the US."
According to the government, "this provides stability and predictability for Indian agricultural exporters and ensures that key farm products continue to enjoy uninterrupted market access". It said highly sensitive agricultural sectors, including meat, poultry and dairy products, GM food products, soyameal, maize and cereals, remain fully protected under a carefully crafted exemption category.
For select sensitive agricultural products such as parts of plants, olives, pyrethrum and oil cakes, the tariff reduction category has been applied to ensure that a measured level of duty protection continues.
In-shell almonds, walnuts, pistachios and lentils, are some "highly sensitive items" which have been liberalised under tariff rate quotas (TRQs) where "limited quantities are allowed at reduced duties".
Immediate duty elimination has been offered only for select non-sensitive products that are already liberalised under other FTAs, it said.
"Sensitive sectors such as automobiles have been liberalised through a combination of quota and duty reduction mechanisms. Medical devices have been addressed through long and staggered phasing schedules," the government said, adding that alcoholic beverages have been offered under tariff reduction along with minimum import price under the trade pact.
While the agreement secures zero additional duty access for industrial exports worth $38 billion, market access for American industrial goods has been structured strictly on the basis of product sensitivity, combining immediate tariff elimination, phased reduction (up to ten years) and quota-based access.