Trade talks between India and the US have once again stalled, with dairy emerging as the unyielding roadblock. Despite days of back-and-forth, both sides remain locked in disagreement, and the issue isn’t new. It’s dairy—again.
Six days in, and still no breakthrough. Indian officials are holding firm. “Dairy is non-negotiable,” a top source said flatly. That sector, after all, supports more than 80 million people back home, mostly small farmers.
Rajesh Agarwal, the Special Secretary leading India’s delegation in Washington, has prolonged his visit by an extra day, hoping to find a way through the deadlock. The hope? To salvage something before it’s too late. But there’s no sign of movement yet.
The US wants access. India says—absolutely not.
Meanwhile, New Delhi has laid out its own wish list. They’re asking for duty relief on products like textiles, shrimp, leather, grapes, oilseeds, and chemicals. Stuff that helps its export-driven sectors. “These don’t threaten any US industry,” a source pointed out. “There shouldn’t be pushback.”
External Affairs Minister S. Jaishankar is set to weigh in personally, with a face-to-face meeting scheduled with US Secretary of State Marco Rubio on the sidelines of a diplomatic gathering. Maybe diplomacy can do what negotiation hasn’t.
The interim pact, if signed, would cover up to $50 billion worth of goods. It’s supposed to be a step toward a bigger, long-term trade agreement. But time’s running out. The US wants something concrete before July 9. India, though, isn’t responding.
At the heart of it: a clear message from New Delhi. Trade deals are important, but the livelihood of millions in the rural belt can’t be bartered away. Not even for tariff relief.
As talks drag on, both sides are weighing their options. But for now, it’s a stalemate.
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