US Labels India’s Dairy Import Rules as 'Trade Barriers' at WTO

July 11, 2025 – The United States has once again raised issues with India’s dairy import certification requirements at the World Trade Organization (WTO) as “unnecessary trade barriers” delaying access to the Indian market for American dairy exporters.

India, the largest milk producer in the world, is implementing a strict veterinary health certification practice for all milk and milk products imported into India. All of these certificates must state that the product is free from drugs, antibiotics, pesticides, and heavy metals. The US is asserting that these types of requirements should be scientific and should not unduly restrain international trade.

During a recent meeting of the WTO, the US delegation reiterated that the certifying body in India has not addressed its longstanding issues with the requirements and noted, while recognising the updated Indian certificate effective in November 2024, US stated, “We remain concerned that India’s certificate requirements present unnecessary trade barriers for US dairy exports to India’s market”.

US Pushes for Science-Based Standards

Washington reiterated that India’s integrated certificate should be issued and validated by the exporting country’s competent authority. It stressed the importance of protecting public health but insisted that these policies must align with risk assessments and scientific evidence and must not exceed the necessary level of restriction.

India Defends Dairy Sector Amid Trade Talks

India has held a strong position in the negotiations and, most notably, with the opening of its dairy and agriculture sectors. Officials have argued that exposing local dairy and agriculture products to foreign competition would put the livelihoods of millions of small farmers at risk.

Jayen Mehta, Managing Director of Gujarat Co-operative Milk Marketing Federation Ltd (Amul), remarked, “We mustn’t give them very cheap access to our markets… They are intended to dump their surplus in our country, which we cannot afford.” He noted that Indian dairy farmers typically rear two to three animals, in stark contrast to large American operations managing herds in the hundreds.

India’s dairy industry is crucial to the nation’s economy, providing sustenance to more than 1.4 billion people and employing almost 80 million rural farmers. India produces approximately 239 Metric Tonnes of milk on an annual basis, which is more than double the U.S., with a gross value of just about $16.8 billion.

Amul Leads India’s Food Brand Rankings

Amid the policy debates, Amul has maintained its hold as India’s number one food brand with a brand value of $4.1 billion, according to a Brand Finance report. Second place was awarded to Delhi’s Mother Dairy, while Britannia finished third.

As both countries press ahead with trade negotiations, these dairy rules remain a sensitive flashpoint with broader implications for future bilateral agreements.

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