Boosting bilateral trade: India, US move swiftly to ease apple, shrimp trade barriers amidst deal progress
India-US trade deal: Both India and the United States are making significant headway in reducing bureaucratic obstacles affecting trade in various commodities between the two nations.Over the past two weeks, substantial developments have happened to streamline the import of American apples and other food products, whilst also addressing challenges faced in exporting Indian shrimp to the United States.A delegation from the United States Food and Drug Administration (FDA) visited India recently to discuss the shrimp export matter and conduct an “in-country assessment”. This evaluation is anticipated to result in a significant agreement before the end of the year, according to an ET report.Shrimp exports to USIndia’s position as the leading shrimp exporter to the US, with exports worth $2.7 billion in the previous financial year, faces significant challenges. The implementation of an 18% US tariff under the Trump administration is impacting trade.The Indo-US shrimp trade faces additional obstacles beyond tariff negotiations. Indian shipments frequently face rejection due to various issues, including suspected antibiotic content, incorrect labelling, and sanitation concerns. Multiple rejections have been recorded in the first half of 2025.Also Read | Advantage or disadvantage? How the US-China trade deal will likely impact India – explainedA USFDA delegation visited India to discuss a potential Regional Partnership Agreement (RPA) for shrimp trade, which could significantly benefit the Indian sector. Ecuador, India’s competitor in shrimp exports, has maintained an RPA with the USFDA since 2023.The proposed US-India shrimp RPA aims to establish clear protocols and safety audit mechanisms for seafood imports, potentially reducing shipment rejections and accelerating US customs clearances. Sources indicate efforts are underway to finalise the agreement by year-end.The USFDA team conducted meetings with India’s Marine Products Export Development Authority on May 5-6. Reports suggest that teams are currently assessing regulatory compliance through on-site evaluations with various governmental departments and ministries.Apple imports from USIndia is preparing for substantial procedural changes to facilitate the import of US apples, addressing concerns highlighted in the March 31 USTR report.India’s regulations since 2021 require ‘non-GM origin’ and ‘GM-free’ certificates for apple imports. This has severely impacted US apple exports to India, as noted in their complaints to the World Trade Organization, because the US Department of Agriculture does not provide such certifications.The Indian government is considering a proposal to simplify the process by accepting a USFDA declaration ensuring no GM apples or products will enter India, replacing the current certification requirement. This declaration may require additional validation from Indian diplomatic missions in the US.Also Read | India proposes cutting tariff gap with US to less than 4% from 13% to clinch trade deal with Donald Trump: ReportUnder the proposed changes, Indian authorities would maintain their inspection rights.The changes are crucial given India’s substantial imports of American apples, with over a million boxes reportedly arriving in 2024.The government is also considering similar procedural adjustments for other US imports, beginning with Ready to Drink (RTD) alcohol. Current regulations allow 0.5-8% alcohol content in “low alcohol beverages”, but new categorisation will permit 10%-15% alcohol content.Additional concessions are under consideration for US Alfalfa hay and Distiller’s Dried Grains with Solubles (DDGS) for animal feed. While Alfalfa hay approval appears imminent, DDGS faces delays due to Genetic Engineering Appraisal Committee requirements.
