In an attempt to restore beneficiary effects of Generalized System of Preferences (GSP), the United States and India are arbitrating a trade deal. The deal under discussion would act as a promise that India would lower tariffs on US produce to which the US would refurbish inclination for some Indian exports.
US-India Trade Disagreement
On cancellation of about $5.7 billion worth Indian exports by the US under its Generalized System of Preferences (GSP) program, India retaliated with higher tariffs on US products like almonds, apples, and walnuts.
As a result, the US has faced critical consequences, considering India being the largest consumer of US Almonds and the second-largest consumer of US apples. Thus, putting forth the bilateral meet focusing on trade talks between two sides.
Threat to US California Almonds Industry
Almonds are California’s third-biggest revenue income. Thereby, Californian almond growers faced the repercussions of India’s tariffs rise of 75% on almonds. Following that, the reduced shipment has paved the way for rent warehouses and additional storage bins to hold the crops. Furthermore, the predicted production rate of the upcoming year is expected to be 2.50 billion pounds of nuts, which is higher than the prior year’s 2.30 billion pounds of nuts. Therefore, the trade balance would also rectify the collateral damage endured by California almond growers.
Failed Deal at Howdy Modi!
Trump and Modi met on 22 September in Houston, Texas at an Indian American Rally popularised as “Howdy, Modi!” Over 50,000 people of Indian origin from across the US attending it made it a historic moment. However, after much speculation the Indo-US bilateral trade concluded without a deal. The two countries were unable to arrive at a modest settlement on failing to agree on several issues.
Despite the disappointment, Modi will return from the US after gaining popularity. However, Modi may return without any actual economic policy gains for India. Considering the event, a comprehensive trade agreement between the countries now seem much further away.