India has rejected Australia's push for deeper tariff cuts on dairy and alcohol, hampering efforts to conclude the second phase of a trade pact by year- end, two Indian government sources
An interim trade pact signed in 2022 lowered tariffs on a range of goods, but negotiations on a broader Comprehensive Economic Cooperation Agreement (CECA) covering goods, services and visas have slowed, with dairy and wine emerging as key sticking points, the sources said.
The officials declined to be named as they were not authorised to speak to media on confidential trade talks. India's commerce ministry and Australia's Department of Foreign Affairs and Trade did not immediately respond to requests for comment. India's refusal to concede on politically sensitive dairy and agriculture products reflects mounting pressure from powerful farm groups, which is also shaping trade talks with other partners, including the United States.
"There is no question of agreeing to Australia's demands for further tariff cuts on dairy and wine," a senior Indian official with direct knowledge of the talks with Australia told Reuters.
"It could have an impact on millions of farmers and our nascent wine industry and grape producers." Farmer groups and politicians from Prime Minister Narendra Modi's home state Gujarat and grape-growing Maharashtra, along with the $35 billion alcoholic beverages industry, are strongly opposing any concessions, the official added. Under the interim pact, tariffs on Australian wine priced above $5 per 750ml bottle were cut to 100% from 150%, with a provision of a reduction to 50% over 10 years, while for bottles above $15, tariffs dropped to 75%, with a target of 25% in a decade.
Australia is pushing to accelerate these cuts and gain better access for dairy products - including cheese, high- protein whey concentrate, lactose and processed items - currently taxed benveen 20% and 30%. Read More
This article is referenced from
https://timesofindia.indiatimes.com/
Views: 3.3k
