Chandigarh, 12 February 2026: Punjab Finance Minister Harpal Singh Cheema on Thursday expressed detailed concerns regarding the proposed US-India Trade Deal, stating that any international trade agreement must be carefully evaluated in light of its potential implications for Punjab’s farmers and the broader Indian agricultural economy.
Addressing a press conference, Cheema said that before the implementation of any bilateral trade framework, it is essential to assess long-term economic consequences, particularly for states like Punjab where agriculture remains a primary source of livelihood and rural employment.
Concerns Over Agricultural Imports and Market Competitiveness
The Finance Minister observed that if agricultural and dairy products from the United States enter Indian markets at lower tariff rates, it could influence domestic price structures and affect the competitive capacity of local producers. He underlined the need to examine whether adequate protective mechanisms have been built into the proposed agreement to safeguard domestic agricultural interests.
He noted that agriculture in Punjab is already facing structural challenges including rising input costs, climate variability, and fluctuating market prices. In this context, the potential impact of a US-India trade agreement requires detailed policy scrutiny.
Punjab’s Role in National Food Security
Cheema highlighted Punjab’s longstanding contribution to India’s national food security framework, particularly through sustained wheat and paddy production over several decades. He stated that Punjab has played a significant role in strengthening central food reserves and supporting the national procurement system.
He emphasized that any major shift in trade policy must take into account the structural importance of agricultural states in maintaining food stability and rural economic balance.
Tariff Structure and International Trade Framework
Global trade rules and tariff commitments are governed under the framework of the World Trade Organization (WTO), which outlines member countries’ obligations and trade disciplines.
Trade policy positions and bilateral negotiation updates from the United States are published by the Office of the United States Trade Representative (USTR).
Cheema stated that any imbalance in tariff structures between trading partners may create competitive distortions, particularly affecting small and medium-scale farmers. He stressed that tariff symmetry and domestic safeguards are critical components of sustainable trade agreements.
Implications for Dairy Sector and Rural Economy
The Finance Minister also referred to the potential impact on the Indian dairy sector and rural value chains. He indicated that increased imports of low-cost dairy and agricultural commodities may influence local procurement systems, cooperatives, and small rural enterprises that depend on agriculture-linked income.
Punjab’s rural economy, he noted, remains closely interconnected with agricultural production, making trade policy decisions particularly significant for regional economic stability.
Need for Policy Transparency and Documentation
Cheema underlined the importance of transparency in bilateral trade negotiations and called for detailed public clarification regarding the scope and provisions of the proposed agreement. India’s trade negotiations and export-import policies are overseen by the Ministry of Commerce and Industry.
He stated that access to structured documentation and policy details would enable informed discussion among stakeholders including farmers’ groups, economists, and policymakers.
Economic Assessment and Policy Balance
Economic analysts suggest that the eventual impact of any US-India Trade Deal will depend on how domestic safeguards, subsidy structures, and tariff protections are aligned with international market access commitments. The balance between global trade integration and protection of domestic agricultural systems remains a key policy consideration.
