Sanjeev Sanyal urges caution on India-US trade pact, cites dairy, agriculture

The most politically sensitive parts of the negotiations involve agriculture and dairy, Sanyal said. “When it comes to dairy, when it comes to agriculture, you can have again a street movement, whether it’s Punjab or anywhere else,” he said. The government will ensure that the interests of the agricultural community are looked after, he added.

Sanyal drew a parallel with the India-US civil nuclear deal, saying political consensus can be important for agreements involving sensitive domestic issues. The experience of that deal showed that broad support can help avoid backlash. India had faced political opposition to the nuclear deal, and a similar dynamic could emerge over agriculture and dairy.

On US tariff policy, Sanyal said repeated uncertainty can disrupt the normal flow of trade and affect broader bilateral relations. “Repeatedly bringing this issue up causes a stop-go in the flow of goods and services and also in the relationship,” he said. Almost every other country has faced some kind of disruption in trade relations with the US over tariffs, Sanyal said. “In that sense, we are not unique.”

Sanyal said the US leadership will eventually need to provide more stable policies to its trading partners, including India. “I do think that at some point in time, the political leadership in the U.S. will have to come to an understanding that they need a much more stable set of policies,” he said.

Sanyal's remarks come as India and the US continue talks on a bilateral trade agreement. Tariffs, agriculture, dairy and market access are among the key issues. Sanyal said India should balance strong ties with the US against the need to protect its domestic and long-term economic interests.