US Legislators Demand Removal of India's Cotton Tariff
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Key Takeaways
Washington, March 3 (NationPress) A coalition of prominent US legislators has called on the Trump Administration to advocate for the removal of India’s 11 percent duty on American cotton. They emphasize that this is a pivotal time for US agricultural producers as negotiations between Washington and New Delhi progress toward an interim trade agreement.
House Budget Chairman Jodey Arrington spearheaded the correspondence directed to US Trade Representative Jamieson Greer, asserting that the current discussions represent a significant opportunity for American agriculture.
“As you finalize the specifics of this Interim Agreement and any future accords with India, we strongly encourage you to pursue a permanent decrease or complete removal of India’s trade restrictions on American cotton exports,” the legislators expressed. “This is a critical moment for American cotton growers.”
The letter, dated February 25 and made public on Monday, underscores that India imposes an 11 percent tariff on raw cotton imports, which lawmakers consider a considerable impediment for US producers.
The legislators pointed out that the US cotton sector exports 85 percent of its output, with India ranking as the fourth-largest textile exporter globally. They remarked that past temporary suspensions of India’s import tariffs have proven to be “brief and do not ensure dependable market access.”
“Enhancing market access to one of the world’s largest economies would deliver a much-needed, market-driven boost to our cotton farmers, who have endured several years of unprecedented losses due to inflation, subdued demand, and adverse weather conditions,” the letter stated.
They further noted that increased US exports to India would be “mutually advantageous by aiding India’s expanding textile sector with consistent and high-quality US materials.”
The lawmakers also expressed gratitude to Greer for his “successful efforts in negotiating new trade agreements that alleviate foreign barriers to American agricultural exports” and noted that recent agreements have been “crucial in driving demand for US commodities.”
This appeal arises as the US and India navigate the framework of a newly announced Interim Agreement. Lawmakers characterized the joint statement detailing the deal as presenting “monumental opportunities for American agriculture.”
Industry advocates quickly rallied behind the congressional initiative.
“The American Cotton Shippers Association (ACSA) firmly backs Chairman Arrington’s initiative in urging USTR to abolish India’s 11 percent tariff on US cotton, which hinders entry for US cotton into this vital market,” declared Buddy Allen, President & CEO of the American Cotton Shippers Association.
“ACSA appreciates USTR’s ongoing efforts to broaden market access for our industry and anticipates collaborating to fortify the US cotton industry during this critical juncture,” he added.
Gary Adams, President and CEO of the National Cotton Council, remarked: “As producers face immense financial challenges, expanding export opportunities is more crucial than ever.”
“The National Cotton Council welcomes this congressional initiative to guarantee that ongoing trade negotiations with India yield real and lasting benefits for American cotton,” he stated.
The Congress members who endorsed the letter include Gregory F. Murphy, Rick Crawford, Austin Scott, Pat Harrigan, Michael McCaul, Michael Cloud, Earl L. “Buddy” Carter, Julia Letlow, Ronny Jackson, Vince Fong, and August Pfluger.