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India's Apple Import & Trade Dynamics



  Sep 14, 2023

India,US and Apples


Explore the juicy details behind India's decision on apple imports and how it's shaping the market with SRIRAM's : Biting into Trade Dynamics.

India's Decision to Remove Additional Duty on US Products

Why did India remove additional duty on US products?

India removed additional "retaliatory" duty on eight US products, including apples and walnuts , as part of a mutually agreed solution reached at the World Trade Organization (WTO). This solution aims to resolve trade disputes between India and the US.

What was the impact of these additional duties?

The additional duties were imposed by India in response to increased tariffs on steel and aluminum by the US during former President Donald Trump's tenure. These tariffs led to trade tensions between the two countries.

How does the removal of these duties affect Indian producers?

The government clarified that the removal of additional duties would not have a negative impact on domestic producers. Instead, it could lead to increased competition in the premium market segment, potentially benefiting consumers with better quality and prices, especially for apples.

What is the significance of this decision for the US?

The removal of additional duties allows the US to compete more effectively with other countries, such as Iran, New Zealand, Chile, and Turkey, in the Indian market for products like apples.

How did local farmers and producers react to this decision?

Some local producers, particularly apple and walnut growers in Kashmir, expressed concerns about potential losses due to increased competition from US products. They argue that US apples are of higher quality and benefit from higher subsidies, putting Indian farmers at a disadvantage.

What is the government's response to these concerns?

The government stated that it is closely monitoring the import of these products and is open to discussions with relevant ministries and stakeholders, including those in Kashmir.

How will this decision impact imports of these products?

The removal of additional duties aims to ensure fair competition among countries exporting products like apples, walnuts, and almonds to India. The move aligns with India's commitments at the WTO.

Are there any changes in the Most Favored Nation (MFN) duty rates?

The MFN duty rates on apples, walnuts, and almonds, including those of US origin, remain unchanged. They are subject to the standard MFN duty rates, which still apply to all imported products.

What's the political response to this decision?

The decision sparked a political debate, with the opposition questioning the move in light of the "vocal for local" (supporting local products) initiative. The ruling party defended the decision, emphasizing that it was a part of a mutually agreed solution.

What was the mutually agreed solution at the WTO?

As part of the WTO agreement, India agreed to remove retaliatory tariffs on seven agricultural products, including lentils, walnuts, apples, and almonds, in exchange for the US allowing an equivalent value of steel exports to enter the US market. This agreement aims to resolve trade tensions between the two countries.


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