US senators raise concerns over rice, wheat subsidies as India expands access to American farming industry

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India has expanded market access to the American agricultural sector across 12 different categories, a senior Biden administration trade official informed lawmakers Wednesday.

The move comes as some influential senators raised concerns regarding subsidies for wheat and rice in India, as well as allegations of forced labor in the country’s shrimp industry.

US Trade Representative (USTR) Katherine Tie defended the Biden administration’s actions during a congressional hearing on trade, highlighting the efforts to open markets for American families and rural communities.

Tie highlighted that through negotiations, the administration has secured over USD 21 billion in new agricultural market access over the past three years.

Tie cited specific examples, noting that India agreed to remove retaliatory tariffs on various US products after terminating seven WTO disputes.

This decision facilitates improved access for a range of agricultural goods, including chickpeas, lentils, almonds, walnuts, and apples, benefitting farmers across several US states such as Michigan, Oregon, California, and Washington.

Furthermore, Tie mentioned that the increased market access extends to products like turkey, duck, blueberries, and cranberries, benefiting farmers in states like North Carolina, Pennsylvania, Virginia, Massachusetts, and Minnesota.

“Trade should work for all Americans. Our goal is to stop pitting Americans against each other in our trade policy and this is why we are taking unprecedented steps to incorporate more voices into trade policymaking, Tie said.

Tie said enforcing trade rules continues to be a priority this year for the administration.

We will continue to level the playing field for American workers and businesses. We are vigorously enforcing our trade agreements, defending American jobs, and making sure more people enjoy the benefits of trade, she said.

Senator Ron Wyden, Chairman of the Senate Committee on Finance, alleged that India’s wheat subsidies are distorting prices and directly hurting American farmers.

Without enforcement, our trade laws aren’t worth the paper they are written on, he said.

India’s wheat subsidies are distorting prices and making it harder for Oregon’s farmers to compete in the Asian market. Mexico’s illegal fishing practices are hurting the environment and its harmful energy regulations are undermining American clean energy suppliers, he said.

China has a rap sheet of unfair subsidies and trade practices so long, we’d be here until dinnertime just to get through it. But I will spare everyone the filibuster. Every single one of these unfair practices by foreign countries is directly hurting workers and companies in the United States, he said.

There’s a lot more USTR can be doing with the tools it has whether that’s raising issues directly with trading partners, starting dispute settlement, or opening 301 investigations into unfair trade practices.

“That’s the only way to hold trade cheats accountable and level the playing field for American workers and businesses, Wyden said.

Senator Steve Daines said that the US has been a leading producer of lentils and access to India is very important for its farmers.

Ranking member Mike Crapo from Idaho targeted China for unfair trade practices and charged that the USTR had not taken any action against them.

USTR has yet to take a single enforcement action against China, period. Whether at the WTO or under section 301 or under the Phase 1 deal. Nothing, he said.

Tie said that the Biden administration has secured USD 21 billion in market access over the last three years.

The safeguard agreement that we renewed with Japan that has allowed for high-quality US beef from your state to increase access to a growing Japanese market. That includes the 12 tariff categories with India, a growing market, growing opportunity for US exporters, she said.

Responding to a question from Senator Bill Cassidy on a whistleblower’s allegations of forced labour in the Indian shrimp industry, Tie said she has raised this issue with her Indian counterpart. It’s not an easy conversation. We will continue to champion this particular issue, she said.

Cassidy also raised the issue of rice subsidy by India. There’s also a concern from our rice people who they say if it were not for Indian subsidies of rice, they would have roughly USD 850 million more in export, he said.

With inputs from PTI