20% cut in retaliatory tariff on US apples will not impact domestic farmers: Goyal

India imposed additional duties of 20% each on apples and walnuts and ₹20/kg on almonds from the US in 2019 in retaliation to the Washington’s increasing tariffs on Indian steel and aluminium products

India’s decision to remove 20% “retaliatory” tariff on American apple imports, after Washington agreed to provide market access to Indian steel and aluminium products, will not affect domestic farmers as they continue to enjoy three layers of protection – a high import duty of 50%, a minimum import price of ₹50 per kg, and sanitary and phytosanitary measures – commerce minister Piyush Goyal said on Tuesday.

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“There is no duty reduction in this case. It is just withdrawal of the retaliatory tariff, reciprocating the US’ move to restore access of Indian steel and aluminium products in its market,” he added, explaining a move that has attracted criticism from the Congress. There is no competition between domestically produced apples and the ones coming from the US, which cater to the premium segment, a commerce ministry official said requesting anonymity. “But the retaliatory tariff did impact Americans as their market share in total imports shrank. Now American apples can compete with imported apples from other countries in the Indian market,” he added.

During Prime Minister Narendra Modi’s US visit in June this year, he and US President Joe Biden decided to amicably resolve six outstanding trade disputes at the World Trade Organisation (WTO) involving steel, aluminium, renewable energy, solar products and other exports. The seventh and the last remaining trade dispute, concerning poultry items was resolved during Biden’s India visit last week.

“With the decision to resolve six outstanding WTO disputes between the US and India through mutually agreed solutions in June 2023, India has withdrawn additional duties on eight US origin products, including apples, walnuts and almonds,” the commerce ministry official said.

India imposed additional duties of 20% each on apples and walnuts and ₹20/kg on almonds from the US in 2019 in retaliation to the Washington’s protectionist measure of increasing tariffs on Indian steel and aluminium products.

“These additional duties imposed by India on US-origin products have been withdrawn as the US agreed to provide market access to steel and aluminium products under the exclusion process,” said the official, adding that import duties remain the same on apples, walnuts and almonds products at 50%, 100% and ₹100/kg, respectively.

According to the official, the market share of the US apples fell due to the imposition of retaliatory duties and imports from other countries – Turkey, Italy, Chile, Iran, and New Zealand – jumped from $160 million in 2018-19 to $290 million in 2022-23.