India 'tough nut to crack', says USTR Greer as negotiators wrap up trade talks round

A 12-member Indian delegation led by Darpan Jain, Additional Secretary in the Department of Commerce, concluded three days of trade negotiations in Washingto...

What Happened

A 12-member Indian delegation led by Darpan Jain, Additional Secretary in the Department of Commerce, concluded three days of trade negotiations in Washington with the US team led by Brendan Lynch, Assistant USTR for South and Central Asia.
The US Trade Representative, while testifying before the Committee on Ways and Means, described India as "a tough nut to crack," noting that India has protected its agricultural markets for a very long time.
The USTR acknowledged that while India seeks to shield large parts of its farm sector, areas of mutual agreement exist — citing distillers dried grains (DDGs) and pork as specific commodities under active discussion.
Both sides characterised the discussions as "constructive," with a full-fledged Bilateral Trade Agreement (BTA) expected by late 2026 or 2027.

Static Topic Bridges

India-US Trade Deal Framework (February 2026)

Following a landmark joint statement on February 2, 2026, and the release of framework text on February 7, India and the US announced the contours of an interim trade arrangement. Under this framework, the US agreed to reduce effective tariffs on Indian goods to 18% (down from a peak of approximately 50% that included punitive duties), while India committed to eliminating or reducing tariffs on US industrial goods and a wide range of US agricultural products.

Punitive 25% tariff on Indian goods (linked to India's purchase of Russian oil) was effectively removed under the framework.
India's tariff commitments include dried distillers' grains (DDGs), red sorghum, tree nuts, fresh and processed fruit, soybean oil, and wine and spirits.
The 'Mission 500' initiative under the US-India COMPACT framework targets USD 500 billion in bilateral trade by 2030.
India also committed to purchasing USD 500 billion worth of US energy products, aircraft, precious metals, technology goods, and coking coal over five years.

Connection to this news: The ongoing talks represent the fine-print phase of translating the February framework into binding commitments. India's resistance on agriculture reflects the political and economic sensitivity of the farm sector, which employs roughly half the country's workforce.

India's Agricultural Trade Policy

India has historically maintained high tariff barriers on agricultural imports to protect the livelihoods of its large farming population and ensure domestic food security. India's "Sensitive List" under various trade agreements carves out farm products from liberalisation commitments.

Agriculture employs approximately 45–50% of India's workforce and contributes around 17–18% of GDP.
India's average applied tariff on agricultural goods is among the highest of major economies, reflecting the political salience of farmer incomes.
Distillers dried grains (DDGs) are a high-protein animal feed by-product of US ethanol production; India currently levies steep duties on this product.

Connection to this news: The USTR's specific mention of DDGs and pork points to products where the US sees near-term market access opportunities, even as India protects staple crops and sensitive commodities.

WTO Disciplines and Bilateral Trade Agreements

Bilateral trade agreements (BTAs) can go beyond World Trade Organization (WTO) commitments but must still comply with WTO rules such as the Most Favoured Nation (MFN) principle and the requirement that bilateral deals cover "substantially all trade" (Article XXIV, GATT).

India is a founding member of the WTO (1995) and has several free trade agreements — including with ASEAN, Japan, South Korea, and the UAE.
India has typically protected agriculture more fiercely in bilateral deals than in industrial goods negotiations.
The India-US BTA would be among the most consequential trade agreements India has negotiated, given the US is India's largest export destination.

Connection to this news: The structural tension in these talks — US seeking agricultural market access, India offering industrial tariff cuts — mirrors the classic pattern in India's past FTA negotiations.

Key Facts & Data

India-US bilateral trade stood at approximately USD 190 billion in FY 2024-25.
The 'Mission 500' target seeks to more than double trade to USD 500 billion by 2030.
US effective tariff on Indian goods reduced from ~50% to 18% under the February 2026 framework.
Distillers dried grains (DDGs) and pork are among the specific US agricultural commodities under negotiation.
Agriculture contributes ~17–18% of India's GDP and employs ~45–50% of its workforce.
India has committed to purchasing USD 500 billion in US goods (energy, aircraft, technology, coking coal) over five years.
A full BTA is anticipated by late 2026 or 2027 under the current roadmap.