A group of senior US lawmakers has called on the Trump Administration to work towards removing India’s 11 per cent tariff on American cotton. Led by House Budget Chairman Jodey Arrington, the lawmakers emphasized the importance of this move for US farmers amid ongoing trade negotiations between Washington and New Delhi.
In a letter to US Trade Representative Jamieson Greer, the lawmakers stressed the need to secure a permanent reduction or elimination of India’s trade barriers on American cotton exports. They highlighted that India’s 11 per cent tariff on raw cotton imports poses a significant obstacle for US producers, impacting the country’s cotton industry, which exports 85 per cent of its production.
The letter, dated February 25 and made public on Monday, pointed out that India is the fourth largest global textile exporter and that previous temporary suspensions of import duties by India have not provided lasting market access for US cotton. The lawmakers underscored the potential benefits of increased market access to India for American cotton farmers, who have faced challenges such as historic losses due to various factors like inflation, low demand, and adverse weather conditions.
The lawmakers also expressed gratitude to Greer for his efforts in negotiating trade agreements that reduce foreign barriers to American agricultural exports. They mentioned that recent trade deals have played a crucial role in enhancing demand for US commodities, particularly in the agricultural sector.
The appeal from the lawmakers aligns with the ongoing discussions between Washington and New Delhi regarding an Interim Agreement. The joint statement outlining the agreement has been described as offering significant opportunities for American agriculture. Industry groups, including the American Cotton Shippers Association and the National Cotton Council, have voiced support for the congressional initiative to address India’s cotton tariffs.
