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        Customs & Trade

        India-US trade agreement designed to protect domestic sensitivities: Govt tells LS

        March 27, 2026

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        New Delhi, Mar 27 (PTI) India and the US have agreed on a framework for an interim trade agreement and this has been designed to "protect domestic sensitivities" while creating new export opportunities, the government informed Parliament on Friday.

        Minister of State for External Affairs Kirti Vardhan Singh, in a written response to a query in Lok Sabha, also said the government of India has taken into account the "interests of farmers" while formulating its approach.

        TMC MP Sayani Ghosh asked the Ministry of External Affairs the list of agricultural commodities and food products that India has "agreed or proposed to import" from the US under the "India-US trade deal", including quantities, tariff concessions, tariff-rate quotas or other preferential terms.

        India and the US announced a trade deal on February 2. The joint statement of February 7 noted that both sides have agreed on a framework for an interim trade agreement, reaffirming their commitment to ongoing negotiations towards a comprehensive Bilateral Trade Agreement (BTA), the MEA said.

        The framework aims to promote "reciprocal and mutually beneficial" trade, enhance market access, and strengthen supply chain resilience, Singh said.

        Under the framework, both sides have agreed to expand preferential market access, establish rules of origin, and address non-tariff barriers, including in areas such as medical devices, ICT goods and agricultural products, the minister said.

        It also includes cooperation on standards, digital trade, economic security, and technology, alongside efforts to enhance supply chain resilience, and reflects a shared commitment to deepen trade in advanced technologies, he added.

        "The agreed framework safeguards India's core sensitivities, particularly in agriculture and dairy, while enhancing export competitiveness, especially in labour-intensive sectors, creating opportunities for MSMEs and industry, and expanding cooperation in areas such as technology, energy and manufacturing," the government said.

        "Limited and calibrated tariff concessions" have been offered on select agricultural products through quota-based mechanisms, phased concessions and partial duty reductions, keeping in view domestic demand-supply gaps, Singh said.

        The quotas are within existing import levels so as to "avoid adverse impact on domestic farmers," he said.

        The agreement has been designed to "protect domestic sensitivities while creating new export opportunities. The government of India has taken into account the interests of farmers while formulating its approach," the minister said.

        In a separate query by DMK MP Dayanidhi Maran, the MEA was asked the steps have been taken to legally safeguard India's exports, given the US Supreme Court's ruling against "reciprocal tariffs" and the subsequent imposition of alternative tariffs under Section 122.

        "Pursuant to the US Supreme Court judgment dated February 20, 2026, reciprocal tariffs are no longer in force. However, the US Administration, vide a Presidential Proclamation dated February 20, 2026 under Section 122 of the Trade Act of 1974, has imposed a temporary import surcharge of 10 per cent ad valorem on select articles imported into the United States for a period of 150 days with effect from February 24, 2026," Singh said.

        India remains engaged with the US side on the issue, he added.

        Ensuring stable energy prices and secure supplies to safeguard the interests of Indian consumers in a volatile energy scenario are key objectives of India's energy security policy," the MEA said. PTI KND ZMN

        Trade agreement framework balances market access with farmer safeguards, calibrated tariff concessions, and export opportunities across key sectors. India and the United States have agreed on a framework for an interim trade agreement intended to expand reciprocal and mutually beneficial trade while protecting domestic sensitivities, particularly in agriculture and dairy. The framework contemplates improved market access, rules of origin, action on non-tariff barriers, and cooperation on standards, digital trade, economic security, technology, supply chain resilience, energy and manufacturing. Limited and calibrated tariff concessions have been offered on select agricultural products through quota-based mechanisms, phased concessions and partial duty reductions, with the quotas kept within existing import levels to avoid adverse impact on domestic farmers.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                Trade agreement framework balances market access with farmer safeguards, calibrated tariff concessions, and export opportunities across key sectors.

                                India and the United States have agreed on a framework for an interim trade agreement intended to expand reciprocal and mutually beneficial trade while protecting domestic sensitivities, particularly in agriculture and dairy. The framework contemplates improved market access, rules of origin, action on non-tariff barriers, and cooperation on standards, digital trade, economic security, technology, supply chain resilience, energy and manufacturing. Limited and calibrated tariff concessions have been offered on select agricultural products through quota-based mechanisms, phased concessions and partial duty reductions, with the quotas kept within existing import levels to avoid adverse impact on domestic farmers.





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