Modi Vs Trump! Both leaders stand firm on same ground as July 9 trade deal deadline approaches, India now plans to…, US also eyes to…

New Delhi: India and the United States have been locked in trade agreement talks for weeks, and with the July 9 deadline fast approaching, both sides are making determined efforts to strike a deal despite their firm positions. It is important to note that the United States has already reached an agreement with its biggest rival, China. However, it has not yet been able to do so with India. The main reason for this is that the United States President Donald Trump and Indian Prime Minister Narendra Modi are standing firm on their respective positions.

Both leaders are equally sensitive about the interests of their countries’ farmers, but their targets are different, which has created a deadlock. Notably, at one point, India was not even willing to reduce duties on agricultural products. The core issue in the stalemate is the same for both countries — the farmer.

The United States is working to give all the advantages to its farmers by selling its agricultural and dairy products in the Indian market. India, on the other hand, wants to safeguard its farmers from cheap American agricultural and dairy imports. If these low-cost products enter India, prices could fall, harming Indian farmers.

Trump’s Political Compulsion

It is important to note that American farmers—especially those from the Midwest- are Donald Trump’s strong political base. Trump received massive support from rural areas in the 2016 and 2020 elections. This support played a crucial role in his rise to the presidency. That’s why his administration prioritized the interests of the US agriculture and dairy sectors in trade policy. Trump’s statements like “Our farmers are going to do really well” and “No one can compete with you” reflect this political commitment.

Here are some of the key details:

  • American farmers have now become more dependent on exports due to surplus domestic production and changing consumption patterns.
  • States like Iowa, Wisconsin, and Nebraska rely on foreign markets for products such as soybeans, corn, dairy, and meat.
  • American farmers gaining access to a large market like India is important not only for the economic interests of these states
  • The cash aid provided to farmers during his previous term further demonstrates that he views them as a core part of his support base.

PM Modi’s Concerns:

For Prime Minister Narendra Modi, protecting the country’s farmers is both an economic and political necessity. Even though agriculture contributes only 16 percent to India’s USD 3.9 trillion economy, nearly half of the country’s 1.4 billion population depends on it.  As was evident in 2020 when the controversial farm laws had to be repealed, the government cannot afford to risk farmer unrest.

The import of cheap agricultural and dairy products from the US could lead to a drop in local prices, causing significant harm to Indian farmers. This would give the opposition an opportunity to attack the government. If India grants the U.S. access to its market, it may be forced to extend similar concessions to other countries, making the situation even more complex.

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