"Not Something That...": S Jaishankar Explains "Red Lines" In US Trade Negotiations

There are some "red lines" in the India-US trade deal negotiations, Foreign Minister S Jaishankar has underscored amid strained relations with the US over several aspects in bilateral trade where India has refused any concession to President Donald Trump.

Speaking at the ET World Leaders Forum, he has also defended India's oil imports from Russia, which has been a bone of contention in the trade deal negotiations.

"It's funny to have people who work for a pro-business American administration accusing other people of doing business. If you have a problem buying oil or refined products from India, don't buy it. Nobody forces you to buy it. Europe buys, America buys, so you don't like it, don't buy it," said Mr Jaishankar.

The Foreign Minister said Russian oil imports were both in national and global interest, and help in stabilising the oil prices. Reiterating his message to the US, he further asserted that New Delhi would continue to make decisions independently.   

The US had imposed punitive tariffs on India for buying Russian oil, which Trump claimed helps fund the Ukraine war. But that's not the only trade concern between the two countries. India and the US have held several rounds of talks for an interim trade deal, but with no breakthrough. The negotiations have now hit a rough patch over key disagreements over key aspects that the Indian government has clearly refused to compromise on.

Mr Jaishankar has assured that the negotiations are still underway, and that there is no permanent fallout. "Negotiations are still going on. The bottom line is we have some red lines. Negotiations are still going on in the sense that nobody said the negotiations are off. People do talk to each other."

He explained that these "red lines" are aspects on which the government is not ready to compromise.

Read: US Trade Team's India Visit Called Off, Likely To Be Rescheduled: Sources

"Where we are concerned, the red lines are primarily the interests of our farmers and, to some extent, of our small producers. We, as a government, are committed to defending the interests of our farmers and our small producers. We are very determined on that. That's not something that we can compromise on," he added.

Some of the US demands that clearly crossed the "red line" for the Indian government were related to sectors that form the basis of the country's rural economy.

The US has been pressing India to open its markets to American dairy, poultry, and agricultural products like corn, soybeans, wheat, ethanol, fruits, and nuts. But India, an agrarian economy, has held back on providing access to its markets for corn, soybeans, wheat, and dairy products.

The major reason behind India's pushback is that the US mostly grows genetically modified corn and soybeans. India does not allow the import of GM food crops and considers them harmful to human health and the environment.

Read: Why India Has Vowed To Protect Its Farmers In The Face Of Tariff Threats

Dairy is another very sensitive sector that provides livelihood to millions of people in the country. Several small and landless farmers depend on this sector, with dairy helping them sustain erratic monsoons or fluctuations in crop production.

In a clear message to the US side, Prime Minister Narendra Modi has declared publicly that the country will not compromise on the interests of farmers.

"Modi is standing like a wall against any harmful policy related to farmers, fishermen, and cattle rearers of India," he had said in his Independence Day speech, an annual address on an occasion that reminds the country of its journey from being a British colony to a free nation.