Leader of the Opposition in the Lok Sabha and Congress MP Rahul Gandhi on Saturday accused Prime Minister Narendra Modi and his government of misleading the country over the tariff provisions in the India-US interim trade agreement, and said the agreement will adversely impact India’s cotton farmers and textile exporters.
Rahul Gandhi said while Indian textiles attract 18 per cent tariff in the United States, Bangladesh is being given the benefit of zero per cent tariff on textile exports on the condition that it imports American cotton.
Questioning the policy framework, he alleged that importing US cotton would hurt domestic farmers, while not importing it would hurt the textile industry.
He further claimed that Bangladesh is indicating a possible reduction or stoppage of cotton imports from India, which could worsen the situation for Indian producers.
In a post on Twitter, the Congress MP wrote, “18% tariff vs 0% – let me explain how the expert liar PM and his cabinet are spreading confusion on this issue. And how they are cheating India’s cotton farmers and textile exporters through the India-US trade deal.”
He wrote, “Bangladesh is being given the benefit of 0% tariff on textile exports to the US, with the only condition being that they have to import American cotton. After the announcement of 18% tariff on Indian textiles, when I raised a question in Parliament about this special exemption being given to Bangladesh, a minister in the Modi government replied: “If we want the same benefit, we will have to import cotton from the US. Why was this fact hidden from the country till now?”
He said that this agreement will push millions of people towards unemployment and economic crisis.
He also criticized the government’s conduct of the negotiations and said that in the national interest the agreement should have provided for protection of both cotton farmers and textile exporters.
The post read, “What kind of policy is this? Is it really a choice – or is it a trap designed to push us into a ‘well in front, pit in back’ situation? If we import American cotton, our own farmers will be ruined. If we don’t import it, our textile industry will lag and be destroyed. And now Bangladesh is also hinting that it may reduce or even stop cotton imports from India.”
Textile industry and cotton farming are the backbone of livelihood in India. The livelihood of crores of people depends on these sectors. Attacking these areas means pushing millions of families into the quagmire of unemployment and economic crisis. A visionary government thinking in the national interest would have struck an agreement that would protect and ensure the prosperity of both cotton farmers and textile exporters.
But just the opposite has happened. “Surrender” Narendra Modi and his ministers have struck a deal that is likely to cause deep damage to both sectors,” the post further read.
The India-US interim agreement, announced last week, serves as a framework for a reciprocal and mutually beneficial trade agreement between the two countries.
The agreement would include eliminating or reducing tariffs on a wide range of U.S. industrial goods and food and agricultural products, including dry grains, red sorghum for animal feed, nuts, fresh and processed fruits, soybean oil, wine and spirits, and other products.
In return, the United States will impose reciprocating duties of 18 percent on select Indian goods, including textiles, apparel, leather, footwear, plastics, rubber, organic chemicals, home furnishing items, handicraft products and certain machinery. When fully implemented, US tariffs on goods such as generic pharmaceuticals, gems and diamonds and aircraft parts will be eliminated.
