US lawmakers and industry leaders have welcomed the announcement of an agreement with India to end the retaliatory tariffs placed on American apples and pulse crops which New Delhi will now give access to American agricultural producers and manufacturers to the country's huge market.
In 2018, the US imposed 25 per cent and 10 per cent import duties on certain steel and aluminium products respectively on grounds of national security. In retaliation, India June 2019 imposed customs duties on 28 American products, including chickpeas, lentils, almonds, walnuts, apples, boric acid, and diagnostic reagents.
"Today is a very good day for Washington's world-famous apples and a huge boost to Washington state's agriculture economy," Senator Maria Cantwell said.
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"India has announced it is lifting retaliatory tariffs that all but shut down the Indian market for Washington's more than 1,400 apple growers and now our growers will once again have access to this USD 120 million market," Cantwell, the Democratic Party lawmaker, said in a statement.
Cantwell's statement came as Prime Minister Narendra Modi held wide-ranging talks with US President Joe Biden.
India was Washington’s second export market for apples, bringing in USD 120 million in 2017. This season, Washington only exported about USD 1 million worth of Apple products to India, according to Cantwell’s office.
The tariffs will end within 90 days – just in time for the 2023 apple harvest.
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United States Trade Representative (USTR) Katherine Tai on Thursday announced that the US and India have agreed to terminate six outstanding disputes at the World Trade Organisation.
"India also agreed to remove retaliatory tariffs, which it had imposed in response to the US Section 232 national security measures on steel and aluminium, on certain US products, including chickpeas, lentils, almonds, walnuts, apples, boric acid, and diagnostic reagents," USTR said in a statement on Thursday.
"These tariff cuts will restore and expand market opportunities for US agricultural producers and manufacturers. This announcement comes as President Biden welcomed Prime Minister Modi to the US for an Official State Visit," the statement said.
Washington Apple Commission President Todd Fryhover said the agreement will again put Washington’s apple industry on equal footing with competitors in India, local media reported.
“The Washington apple industry has worked hard to develop the Indian market for our world-class apples, and this will help us try to regain our lost market position,” he said in a statement.
Washington State Department of Agriculture Director Derek Sandison said in a statement that regaining access to the Indian market is “a big win.”
“The lifting of retaliatory tariffs in India is great news for Washington agriculture, especially for Washington apple producers,” Sandison said.
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The Northwest Horticultural Council, the Washington Apple Commission and local farmers praised the agreement.
Northwest Horticultural Council President Mark Powers said farmers are eager to get back to business in India.
“This is a win for apples,” NHC president Mark Powers said in a statement."
The US is the largest trading partner of India. In 2022-23, the bilateral goods trade increased to USD 128.8 billion as against USD 119.5 billion in 2021-22.
Congresswoman Suzan DelBene, said Thursday’s agreement is a “major win” for Washington’s apple growers because the tariffs “severely restricted” apples from being sold to India.
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