Removal of additional duty on US walnut, apples opens a rift

livemint.com:

NEW DELHI : The removal of additional duties on imports of American apples, walnuts and almonds will have no effect on growers in Jammu and Kashmir, the Centre said on Tuesday, a day after former chief minister Mehbooba Mufti expressed concern. The Centre said the basic duty of 50% will continue to protect domestic players. India recently lifted additional duties on several American products, including chickpeas, lentils and apples.

The retaliatory measures were imposed in 2019 in response to the US’ decision to raise tariffs on steel and aluminium items. Additional Secretary in the commerce ministry Peeyush Kumar said during a press briefing that the government is monitoring imports and that it has sufficient policy space to support growers if there is any implication of the move, adding that only the additional duty has been removed and the basic duty of 50% will continue. “There were certain concerns that were being raised on the mutually agreed solution that has come in, more specific to seven-eight agriculture products, where we had levied additional import duties in retaliation to the steel and aluminium measures (imposed by the US)," Kumar said.“So only the additional (import duty) has been removed.

The most favoured nation (MFN) or basic custom duty (BCD) rates of 50% are applicable. When we had raised the additional duty against America, it had a disadvantage. It had lost a certain market that was taken up by other countries including Iran, New Zealand, Chile and Turkey.

By revoking this additional duty, the US will be able to compete with these markets," he added. Imports of American apples decreased sharply from $145 million (127,908 tonnes) in 2018-19 to only $5.27 million (4,486 tonnes) in 2022-23. The