India's Purchase of Oil from Russia and Protection of its Agriculture and Dairy Markets Irks the US. The US Secretary of State stated that both these reasons are causing tension in relations.
India US Trade Tension: US Secretary of State Marco Rubio recently shared several important points regarding the growing distance between India and the United States. He clarified that India's purchase of oil from Russia is not the only reason for tension in the relations between the two countries; there are several other underlying reasons that have been hindering discussions for a long time.
India's Energy Needs and the Role of Russian Oil
In an interview with Fox Radio, Marco Rubio stated that India's energy needs are enormous. These include resources like oil, gas, and coal, which are essential to fuel India's vast population and rapidly growing economy. According to Rubio, India buys oil from Russia because it is cheaper than oil from other sources, and is sometimes available even below the global price.
He also said that the United States objects to the fact that the oil purchased by India economically supports Russia's war against Ukraine. Therefore, this becomes a significant cause of tension in India-US relations.
Not Just Russian Oil, Agriculture and Dairy Sectors are Also at the Root of the Dispute
However, Rubio clarified that this is not the only reason. He explained that there are also several disagreements between the United States and India regarding trade agreements. The biggest reason for these differences is India's attempt to protect its agriculture and dairy sectors from foreign interference.
What Does America Want?
The United States wants greater access to India's agricultural market, especially for products like genetically modified (GM) crops, dairy products, corn, soybeans, apples, almonds, and ethanol. The US is demanding a reduction in import duties (tariffs) in these areas so that its products can come into the Indian market at cheaper prices.
India's Response: Protection of Small Farmers is Essential
India has clearly refused the demands of the United States, stating that reducing tariffs on dairy, rice, wheat, and GM crops is not currently possible. According to Indian officials, any such step could affect the livelihoods of nearly 700 million rural people in the country, including approximately 80 million small dairy farmers. India argues that allowing cheap and subsidized agricultural products from the US to enter the country would be a major threat to the income of small farmers.
Clash in Other Sectors as Well
In addition to agriculture and dairy, the United States also wants better access to the Indian market in other areas. This includes products like ethanol, apples, almonds, automobiles, medical devices, medicines, and liquor. The US wants India to reduce its non-tariff barriers, simplify customs rules, and relax laws related to digital trade, patents, and data storage.
