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12 Feb 2026·Source: The Indian Express
4 min
International RelationsEconomyNEWS

US Trade Fact Sheet Revision: Pulses Removed from India Deal

US modifies trade fact sheet with India, excluding certain pulses.

US Trade Fact Sheet Revision: Pulses Removed from India Deal

Photo by Laurentiu Morariu

The United States has revised its trade deal fact sheet concerning India, specifically removing references to "certain pulses." This change indicates a potential shift in trade priorities or ongoing negotiations between the two countries regarding agricultural products. The original fact sheet likely highlighted pulses as a key component of the trade relationship, and the revision suggests a reevaluation of this aspect.

Key Facts

1.

The United States has revised its trade deal fact sheet concerning India.

2.

The revision involves removing references to 'certain pulses'.

3.

The original fact sheet likely highlighted pulses as a key component of the trade relationship.

4.

The revision suggests a reevaluation of this aspect.

UPSC Exam Angles

1.

GS Paper 2: International Relations - Bilateral agreements involving India

2.

GS Paper 3: Economy - Trade agreements and their impact on Indian agriculture

3.

Potential for questions on trade negotiations, agricultural subsidies, and geopolitical implications

Visual Insights

US-India Trade Relations: Key Events

Timeline of key events in US-India trade relations, highlighting the removal of pulses from the trade deal fact sheet.

US-India trade relations have seen various developments and shifts in priorities over the years. The removal of pulses from the trade deal fact sheet indicates a potential reevaluation of agricultural trade between the two countries.

  • 2018US imposes tariffs on steel and aluminum imports, impacting India.
  • 2019India revokes MFN status granted to Pakistan.
  • 2020COVID-19 pandemic disrupts global supply chains, affecting US-India trade.
  • 2022India and the UAE sign a Comprehensive Economic Partnership Agreement (CEPA).
  • 2022India and Australia sign an Economic Cooperation and Trade Agreement (ECTA).
  • 2026US Trade Fact Sheet Revision: Pulses Removed from India Deal.
More Information

Background

The trade relationship between the United States and India has evolved significantly over the decades. Initially focused on development assistance, it has transformed into a complex interplay of economic interests, geopolitical strategies, and diplomatic negotiations. Key milestones include the liberalization of the Indian economy in the 1990s and the subsequent growth in bilateral trade and investment. This evolution is influenced by factors such as WTO agreements and the changing global economic landscape. Several agreements and frameworks have shaped the US-India trade relationship. The General Agreement on Tariffs and Trade (GATT), the predecessor to the WTO, laid the foundation for trade liberalization. Bilateral investment treaties and trade facilitation agreements have further enhanced economic cooperation. These agreements often involve negotiations on tariffs, market access, and intellectual property rights. Disputes sometimes arise, requiring resolution through mechanisms like the WTO dispute settlement process or bilateral negotiations. Agricultural trade is a significant component of the US-India trade relationship. India is a major producer and consumer of pulses, while the US is a leading exporter of agricultural products. Trade negotiations often focus on issues such as sanitary and phytosanitary measures, tariff barriers, and market access for agricultural goods. The removal of pulses from the trade deal fact sheet suggests ongoing negotiations or a shift in priorities related to agricultural trade. This is also linked to Minimum Support Price (MSP) mechanism in India. The US-India trade relationship is also influenced by broader geopolitical considerations. Both countries share strategic interests in areas such as regional security, counter-terrorism, and maritime cooperation. Trade and investment ties are often seen as a way to strengthen the overall strategic partnership. However, differences in trade policies and regulatory frameworks can sometimes create friction. The ongoing dialogue between the two countries aims to address these issues and promote a more balanced and mutually beneficial trade relationship.

Latest Developments

Recent years have witnessed increased trade tensions between the US and several countries, including India. The US has pursued a more protectionist trade policy under the previous administration, leading to tariff disputes and trade negotiations. India has also implemented measures to protect its domestic industries, such as increasing tariffs on certain imports. These developments have created both challenges and opportunities for the US-India trade relationship. Ongoing negotiations between the US and India aim to address trade imbalances and promote greater market access. Key areas of discussion include agricultural trade, intellectual property rights, and digital trade. Both countries are also exploring ways to enhance cooperation in emerging areas such as clean energy and healthcare. The removal of pulses from the trade deal fact sheet may be part of these ongoing negotiations, reflecting a shift in priorities or a need for further discussions. Looking ahead, the US-India trade relationship is expected to continue to evolve. Both countries recognize the importance of a strong and balanced trade relationship for their economic growth and strategic partnership. The focus is likely to be on addressing trade barriers, promoting investment, and enhancing cooperation in areas of mutual interest. The outcome of ongoing negotiations and the broader global economic environment will shape the future of the US-India trade relationship. The role of institutions like NITI Aayog is also crucial in shaping India's trade policy. The changing global landscape, including the rise of China and the increasing importance of regional trade agreements, also influences the US-India trade relationship. Both countries are exploring ways to diversify their trade partners and reduce their dependence on any single market. This includes strengthening ties with other countries in the Indo-Pacific region and participating in multilateral trade initiatives. The Indo-Pacific Economic Framework (IPEF) is one such initiative.

Frequently Asked Questions

1. Why is the US trade fact sheet revision regarding India, specifically the removal of 'certain pulses', important for UPSC aspirants?

The revision indicates a potential shift in trade priorities or ongoing negotiations between the two countries regarding agricultural products. This is important for understanding the dynamics of India-US trade relations, which is relevant for both Prelims (factual questions on trade agreements) and Mains (analytical questions on international relations).

2. What are the key facts related to the US trade fact sheet revision that are important for the UPSC Prelims exam?

The key fact is that the United States has revised its trade deal fact sheet concerning India, specifically removing references to 'certain pulses'. The original fact sheet likely highlighted pulses as a key component of the trade relationship. The revision suggests a reevaluation of this aspect.

3. What broader concepts related to international trade should I understand to fully grasp the implications of this US trade fact sheet revision?

To understand the implications, you should understand Bilateral Trade Agreements, Trade Protectionism, Agricultural Subsidies, and Balance of Trade. These concepts provide a framework for analyzing the motivations behind the revision and its potential impact on both economies.

4. How might the removal of 'certain pulses' from the US trade fact sheet impact Indian farmers and the agricultural sector?

The removal suggests a potential reevaluation of the importance of Indian pulses in the US-India trade relationship. This could lead to decreased demand for Indian pulses in the US market, potentially affecting the income of Indian farmers who cultivate these pulses. The Indian government might need to consider measures to support the pulses sector.

5. What recent developments in US-India trade relations provide context for this revision of the trade fact sheet?

Recent years have witnessed increased trade tensions between the US and several countries, including India. The US has pursued a more protectionist trade policy. India has also implemented measures to protect its domestic industries, such as increasing tariffs on certain imports. These developments have created a complex environment for trade negotiations.

6. How does the historical background of US-India trade relations help in understanding the current revision of the trade fact sheet?

The trade relationship between the United States and India has evolved significantly over the decades. Initially focused on development assistance, it has transformed into a complex interplay of economic interests, geopolitical strategies, and diplomatic negotiations. Understanding this evolution provides context for the current reevaluation of specific trade components like pulses.

Practice Questions (MCQs)

1. Which of the following is/are the likely implications of the US removing 'certain pulses' from its trade deal fact sheet concerning India? 1. It signals a potential shift in US trade priorities regarding agricultural products. 2. It indicates that negotiations between the two countries on pulses have concluded successfully. 3. It suggests a reevaluation of the role of pulses in the overall US-India trade relationship. Select the correct answer using the code given below:

  • A.1 and 2 only
  • B.1 and 3 only
  • C.2 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: B

Statement 1 is CORRECT: The removal of pulses suggests a potential shift in US trade priorities. Statement 2 is INCORRECT: Removing pulses indicates ongoing negotiations or a lack of agreement, not a successful conclusion. Statement 3 is CORRECT: The revision suggests a reevaluation of the role of pulses in the trade relationship. Therefore, only statements 1 and 3 are correct. The US and India are important trade partners, and agricultural products are a key component of this relationship. Any changes in trade policy can have significant implications for both countries.

2. Consider the following statements regarding the General Agreement on Tariffs and Trade (GATT): 1. GATT was established in 1948 with the primary goal of reducing tariffs and trade barriers among member countries. 2. GATT included provisions for intellectual property rights and dispute resolution mechanisms. 3. The World Trade Organization (WTO) replaced GATT in 1995, expanding its scope to include services and intellectual property. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.1 and 3 only
  • C.2 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: B

Statement 1 is CORRECT: GATT was indeed established in 1948 with the goal of reducing tariffs and trade barriers. Statement 2 is INCORRECT: GATT did not initially include provisions for intellectual property rights; these were later incorporated into the WTO. Statement 3 is CORRECT: The WTO replaced GATT in 1995 and expanded its scope. Therefore, statements 1 and 3 are correct.

3. Which of the following best describes the primary objective of the Minimum Support Price (MSP) mechanism in India?

  • A.To promote exports of agricultural products
  • B.To protect farmers from price fluctuations and ensure a minimum income
  • C.To regulate the import of agricultural goods
  • D.To provide subsidies to food processing industries
Show Answer

Answer: B

The primary objective of the Minimum Support Price (MSP) mechanism in India is to protect farmers from price fluctuations and ensure a minimum income. The government announces MSPs for certain crops before the sowing season to provide a guaranteed price to farmers. This helps to incentivize agricultural production and ensure food security. While other options may be related to agricultural policy, they are not the primary objective of the MSP.

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