Ongoing negotiations between India and the United States over an interim trade agreement remain stalled on agricultural market access, according to BMI, a Fitch unit. Washington is pushing for greater access to India's market for agricultural products including tree nuts and fresh fruit, while India wants preferential treatment for its own exports before making significant concessions. India's effective tariff rate on U.S. goods stands at 13.6 percent, limiting the practical impact of any interim deal unless preferential access is extended in commercially relevant categories.
India is one of the largest potential growth markets for U.S. fresh and processed agricultural products, and any meaningful tariff reduction on fruit categories could open significant new export channels. However, BMI says India will resist costly concessions unless the U.S. offers a clear competitive advantage over other exporters, and it considers a deal before the December G20 summit unlikely.
This is a slow-moving story but one worth tracking for exporters with tree fruit, citrus, or nut programs looking for market diversification. If an agreement eventually materializes with concessions on fruit categories, it could shift sourcing strategies for growers with export-quality product and margin room to absorb longer transit times.