China & US like square & circle, that’s why we turned to India but it’s hard nut to crack: US
The United States and China have been engaged in a trade war for several years, with both countries imposing tariffs on each other’s goods. The tensions between the two nations have been escalating, and it seems that there is no end in sight to this trade dispute. Recently, US Trade Representative Jamieson Greer made a statement that highlights the difficulties in the trade relationship between the US and China. According to Greer, the economies of China and the US are like a square and a circle, which don’t sit together. This analogy suggests that the two countries have fundamentally different economic systems and approaches to trade, making it challenging to find common ground.
The trade tensions between the US and China have led the US to look for alternative markets for its exports. One of the key areas where the US is seeking to diversify its exports is in crop exports. The US is a significant producer of crops such as soybeans, corn, and wheat, and it has been looking to expand its exports to other countries. Speaking about the importance of diversifying crop exports, Greer stated that it is helpful for the US to diversify its exports, which is why they have turned to India with a bilateral trade agreement.
India is a significant market for US crop exports, with a large and growing population that is increasingly demanding high-quality food products. The US has been seeking to increase its exports of crops such as soybeans and corn to India, which could help to reduce the country’s trade deficit with India. However, Greer noted that there is resistance in India to US row crops, which are crops that are planted in rows, such as corn and soybeans. According to Greer, the Indian market is a “very difficult nut to crack,” suggesting that it will be challenging for the US to increase its exports of row crops to India.
The resistance to US row crops in India is due to several factors. One of the main reasons is that India has its own domestic agricultural industry, which is significant and well-established. Indian farmers produce a wide range of crops, including wheat, rice, and pulses, and the country is largely self-sufficient in food production. As a result, there may be limited demand for US row crops in India, particularly if they are more expensive than domestically produced crops.
Another reason for the resistance to US row crops in India is the country’s agricultural policies. India has a complex system of tariffs and subsidies that can make it difficult for foreign producers to compete with domestic farmers. For example, India has high tariffs on imports of crops such as corn and soybeans, which can make them more expensive than domestically produced crops. Additionally, the Indian government provides significant subsidies to domestic farmers, which can make it difficult for foreign producers to compete.
Despite the challenges, the US is keen to increase its exports of row crops to India. The US has been negotiating a bilateral trade agreement with India, which could help to reduce tariffs and other trade barriers. The agreement could also provide greater market access for US farmers, making it easier for them to export their crops to India. However, the negotiations have been slow, and it is unclear when a deal will be reached.
The US trade representative’s comments about the difficulties of cracking the Indian market highlight the challenges that the US faces in its trade negotiations with India. While the US is keen to increase its exports of row crops to India, the country’s domestic agricultural industry and complex system of tariffs and subsidies make it a difficult market to penetrate. Nevertheless, the US is likely to continue its efforts to negotiate a bilateral trade agreement with India, which could help to increase US exports of row crops and other products.
In conclusion, the trade relationship between the US and China is complex and challenging, with both countries having fundamentally different economic systems and approaches to trade. The US has turned to India as a potential market for its crop exports, but the country’s domestic agricultural industry and complex system of tariffs and subsidies make it a difficult nut to crack. While the US is keen to increase its exports of row crops to India, the negotiations for a bilateral trade agreement have been slow, and it is unclear when a deal will be reached.
News source: https://x.com/Sputnik_India/status/1998714309367521298
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