Why India Won't Open its Agriculture Market to the US

Summary

The complex history of global trade, from ancient bartering to modern tariffs, reveals why India fiercely protects its agriculture and dairy sectors from US pressure. Tariffs, originating from ancient trade taxes, evolved over centuries, with key moments like Britain's Calico Acts and the US Smoot-Hawley Tariff Act shaping international trade policies. The establishment of GATT, and later the WTO, aimed to standardize trade and prevent devastating trade wars. However, under figures like Donald Trump, the US has employed aggressive tariff strategies, particularly targeting trade deficits. India's refusal to open its agricultural markets stems from concerns about the impact of genetically modified crops and cheaper US dairy imports on its local farmers and economy. The history of US PL 480 wheat imports demonstrates how dependence can be exploited, and the development of BT cotton highlights the issues of royalty and farmer costs associated with genetically modified seeds. Furthermore, the potential contamination of non-GM crops and bans in other countries make GM crop integration risky for India's export market. Even subsidized US dairy could undercut Indian producers, impacting millions of farmer families. These factors, combined with religious sentiments regarding animal feed in the US, create significant political and economic barriers to opening India's agriculture sector to the US.