The Indian government has reassured that the removal of additional duties on imports of American apples, walnuts, and almonds will not negatively impact growers in Jammu and Kashmir. This clarification follows concerns raised by former Chief Minister Mehbooba Mufti and National Conference leader Omar Abdullah.
Here are the key points related to the removal of additional duties and its implications:
- Protection through Basic Duty: The Indian government has underlined that the basic duty of 50% will continue to provide protection to domestic growers and players in the agricultural sector.
- Policy Support: The government has affirmed its readiness to offer policy support, ensuring that growers receive assistance if any adverse consequences arise from the removal of additional duties.
- Retaliatory Measures Withdrawn: The additional duties initially imposed on American products, including chickpeas, lentils, apples, walnuts, and almonds, were introduced in 2019 as a retaliatory measure in response to U.S. tariffs imposed on specific steel and aluminum items.
- Competitive Advantage for the U.S.: By eliminating these additional duties, the United States will gain a more competitive edge in the market. This move positions the U.S. to compete with other countries that have captured market share for these products, including Iran, New Zealand, Chile, and Turkey.
- Impact on Imports: Imports of American apples witnessed a substantial decline, plummeting from $145 million (127,908 tonnes) in 2018-19 to $5.27 million (4,486 tonnes) in 2022-23. Concurrently, imports from countries other than the U.S. surged from $160 million in 2018-19 to $290 million in 2022-23.
- Appeals by Local Leaders: Local leaders, such as Mehbooba Mufti and Omar Abdullah, voiced concerns regarding the removal of additional duties. They highlighted potential adverse effects on local growers who have already experienced significant losses since 2019.
The Indian government’s decision to remove these additional duties is aligned with its trade policy adjustments, aimed at resolving trade disputes and promoting stronger international trade relationships. This measure seeks to create a more level playing field for trade partners while safeguarding domestic interests.