Why Centre’s decision to reduce tariffs on American apples is creating controversy? Explained
India will remove duties on eight US products including chickpeas, lentils and apples, which were imposed in 2019 in response to America's measure to increase tariffs on certain steel and aluminium products
PremiumCongress leader Priyanka Gandhi Vadra on Tuesday slammed the Centre over its decision to reduce customs duty on apples imported from the US, saying it will make import of American apples easier and the move has come at a time when apple growers were facing problems.
Priyanka Gandhi Vadra told ANI that the farmers in the state were suffering due to decisions of industrialists concerning procurement and the central government’s move on tariff reduction on apples coming from US will affect them adversely.
"...This will make the import (of American apples) easy and they will be sold easily. Prices of procurement of apples in Shimla have been brought down by big industrialists. When the apple growers are suffering here, who should be helped? They, or the farmers in the US?" she asked.
The Congress leader said local farmers should be helped and they should get proper price for their produce.
In June, the US and India agreed to terminate six outstanding disputes at the World Trade Organization. Also, India agreed to reduce tariffs on certain US products, including chickpeas, lentils, almonds, walnuts, apples, boric acid, and diagnostic reagents, a United States Trade Representative statement said on Friday.
Tariffs on American apples: Explained
An additional 20 per cent duty was imposed on US apples in 2019 in response to US’ measure to increase tariffs on certain steel and aluminium products. There is no reduction on Most Favoured Nation (MFN) duty on apples which is still applicable on all imported apples including on the US at 50 per cent.
Political leaders in Jammu and Kashmir, including former chief ministers Farooq Abdullah and Mehbooba Mufti, have also slammed the Centre’s move to reduce tariff on apples imported from the United States.
The decision to remove 20 per cent retaliatory customs duty on imported American apples will have a "zero" impact on Indian farmers as the government has sufficient policy space to support growers if there is any implication of the move, a senior government official earlier said to news agency PTI.
Additional Secretary in the Department of Commerce Peeyush Kumar said that India is not giving anything "extra" by removing this duty and it was not that "we have opened a floodgate" for American apples.
In fact, it is a win-win deal for India as it restores market access for domestic steel and aluminium products in the American market, which was impacted due to the imposition of high duties by the US in 2018.
The decision to remove these additional duties was part of an agreement reached between India and the US, during the recent visit of Prime Minister Narendra Modi to Washington and New York. India and the US have also agreed to terminate six trade disputes at the World Trade Organisation (WTO).
India will remove these duties on eight US products including chickpeas, lentils and apples, which were imposed in 2019 in response to America's measure to increase tariffs on certain steel and aluminium products.
India imposed retaliatory duties on 28 US products. America imposed an import duty of 25 per cent on steel products and 10 per cent on certain aluminium products on grounds of national security.
*With Agency Inputs
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