India Plans WTO-Compliant Barriers to Protect Dairy Sector in U.S. Trade Talks

India plans to employ World Trade Organisation (WTO)-compliant non-tariff barriers (NTBs) to protect its dairy sector against U.S. market access in ongoing bilateral trade negotiations.

The discussions aim to enhance two-way trade to USD 500 billion by 2030. Senior officials have signaled the use of NTBs, which comply with WTO standards, to maintain the integrity of sensitive sectors like dairy and agriculture.

 A significant concern raised by India involves the potential U.S. practice of feeding dairy cattle animal-derived feed, which contradicts Indian cultural and religious practices. Citing public health and traditional standards, India seeks to exclude dairy fr om the trade agreement while offering concessions on other fronts.

This stance mirrors India's historical approach in negotiations with countries like Australia and the EU, wh ere dairy market openness remains contentious. Currently, despite being the world’s leading milk producer, India constitutes a mere 0.25% of global dairy exports. In financial year 2023, its dairy exports surpassed Rs 2,200 crore, with minimal trading directed towards the U.S. By embedding NTBs, India aims to uphold domestic regulations without breaching international trade laws.