May 26, 2025

India is advocating for the US to lower its strict health and safety standards, allowing Indian fruit and vegetable exporters to access the lucrative American market. The discussions are part of the ongoing negotiations for a proposed trade deal between the two countries. Current restrictions, governed by sanitary and phytosanitary regulations, have led to the rejection of Indian shipments by US customs authorities. These standards vary significantly across nations, creating barriers for Indian products like mangoes, pomegranates, litchi, and vegetables. Despite the high demand for these items, especially among the Indian diaspora in the US, the stringent regulations pose challenges related to pest-risk and inspection protocols. The urgency to address these issues heightened after a recent incident where 25 tonnes of Indian mangoes, valued at approximately $500,000, were rejected and destroyed in the US. Indian agricultural exports to the US in the last fiscal year totaled $2.53 billion, with significant contributions from spices, cereal preparations, rice, fruits, and vegetables. The negotiations aim to enhance market access for Indian horticultural produce, including mangoes, pomegranates, litchi, grapes, and vegetables. India is seeking expedited phytosanitary approvals and the establishment of certification and irradiation agencies within the country to streamline pre-clearance processes and shipment timelines. This move is expected to reduce spoilage and enhance the competitiveness of Indian products in the US market. The proposed Bilateral Trade Agreement (BTA) is crucial for addressing these challenges systematically and facilitating easier compliance for low-risk items. Both countries are optimistic about the early benefits of the trade pact, especially in the horticultural sector. The agreement is seen as a test case for resolving non-tariff barriers effectively. Indian negotiators anticipate reciprocity in US approvals, given India's history of clearing American agricultural products like apples and almonds in recent years. Lowering tariffs and enhancing exports could significantly benefit India, particularly in fish, meat, processed seafood, cereals, fruits, and spices. The talks also aim to address tariff differentials affecting dairy products and explore opportunities to boost exports in various sectors. Industry experts believe that simplifying trade policies, improving infrastructure, and aligning quality standards will help Indian exporters capitalize on the global market for fresh produce. Despite challenges such as limited cold storage facilities and high operating costs, initiatives like EU-compliant packhouses and ongoing trade discussions with the US signal India's positive direction towards expanding its export capabilities. The Generalized System of Preferences (GSP) could also play a pivotal role in providing duty-free access for certain Indian products in developed countries like the US.

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Tags: India, Us, Trade deal, Fruit, Vegetables, Sanitary regulations, Phytosanitary standards, Market access, Exports, Bilateral trade agreement,