Overview of the Discussion on Policy
India and the United States are gearing up for bilateral trade talks, while new developments have emerged that the US administration is mulling additional levies on rice imported from India. Reports say President Donald Trump has started reviewing complaints from American farmers that low-priced foreign rice is taking away market share from them.
Concerns US Farmers Have Raised
During a roundtable meeting in the White House, called to announce a $12 billion support package for American farmers, participants said that many countries export rice to the US at artificially low prices. They said such imports are impacting local prices and hurting domestic farmers. To this, Trump replied that the government would look into these complaints, as well as raise tariffs where needed. He also spoke about the issues with regard to fertilizer imports from Canada.
Statements from Industry Representatives
Merrill Kennedy, chief executive of a rice mill, said India, Thailand, and China are dominating the supply of low-price rice flowing into the US domestic market. He said Chinese products are arriving in Puerto Rico and his company has not exported rice to the island for years. He added the importation patterns are making it hard for rice producers in southern states to operate their facilities. Kennedy said the current tariffs being imposed are helping but higher tariff levels are needed. Trump wanted to know if farmers would like to see even more increases, and they replied by seeking more robust controls on foreign imports.
Administrative Action and Trade Discussions
President Trump ordered Commerce Secretary Scott Besant to prepare a list of countries whose exports are adversely impacting American farmers. Besant named India, Thailand, and China as major contributors but said many more would be included in the full report. Trump added that he would act quickly once the list was complete. The development comes just ahead of formal trade agreement discussions between India and the US, scheduled to begin on the 10th of this month in New Delhi. US Deputy Trade Representative Rick Switzer will lead the American delegation, while Commerce Secretary Rajesh Agarwal will represent India.
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