Historic Opening: India Provides Unprecedented Market Access in US Trade Negotiations
US officials hail India’s trade proposals as “best ever,” boosting agriculture, aviation, and commercial market access.
US Trade Representative Jamieson Greer hailed India's latest concessions in bilateral trade talks as “the best we’ve ever received as a country” during testimony before a Senate Appropriations subcommittee on Tuesday, signalling accelerated momentum toward a potential bilateral trade agreement amid President Trump's aggressive push for reciprocity.
Greer revealed that a USTR delegation is currently in New Delhi negotiating access for American agricultural exports, particularly grain sorghum and soy, despite longstanding Indian sensitivities around row crops. “There is resistance in India to certain row crops, but they've been quite forward-leaning” in their proposals, he told senators, positioning India as a crucial alternative market for US farmers grappling with surging inventories and volatile Chinese demand. Committee Chair Jerry Moran, representing Kansas' grain belt, pressed for diversification beyond Beijing, noting India's reputation as a “difficult country to crack”; Greer countered that diplomatic outreach is now further advanced than in prior administrations.
The optimism extends beyond farming, with Greer confirming “fairly far advanced” discussions on extending zero-tariff commitments for civil aviation parts under the 1979 Aircraft Agreement, provided India reciprocates on market access. He also spotlighted the potential for ethanol sales derived from US corn and soy, drawing parallels to the European Union's $750 billion commitment over several years for American energy products, including biofuels. Broader talks encompass digital services, pharmaceuticals, critical minerals, and regulatory barriers, all under the US-India Strategic Trade Dialogue and Indo-Pacific Economic Framework.
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Bilateral merchandise trade has ballooned to over $190 billion in the past decade, with India emerging as one of America's fastest-growing export destinations despite persistent agricultural tariffs and sanitary hurdles. Negotiations gained steam after President Trump and Prime Minister Narendra Modi's February 2025 summit, which launched the COMPACT initiative for military, commerce, and technology ties, culminating in finalised Terms of Reference for a Bilateral Trade Agreement in April. Greer emphasised that tariffs remain a key enforcement tool: “They respond to enforcement... that's how we generate compliance and market opening.”
The remarks come against a backdrop of tariff tensions, including Trump's recent 50 per cent duties on Indian goods and threats of more unless New Delhi liberalises further. Yet Greer's testimony suggests a thaw, with India’s “constructive engagement” potentially averting escalation and fostering supply-chain resilience amid geopolitical shifts. As talks intensify, both sides eye a deal that could unlock billions in new commerce while balancing domestic protections.
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