Apple imports: US lawmakers seek removal of tariffs by India

Citing New Delhi’s “retaliatory measures”, lawmakers from the US state of Washington have  pleaded with the Joe Biden administration to help remove or reduce the tariffs on American apples imported by India as the country’s fruit industry has incurred significant losses.

In a letter to US Trade Representative Katherine Tai and Commerce Secretary Gina Raimondo, all members of the House of Representatives from Washington state and two other senators said the tree fruit industry suffered losses due to India’s retaliation to US tariffs.

Also read: A strong India is a strong US: US lawmakers

“With retaliatory tariffs in place, Washington state apple growers have continuously lost market share in India. Prior to the implementation of these tariffs, India was our number two export market, valued at USD 120 million annually. Last season, growers exported fruits barely worth USD 3 million,” they said.

Sales evaporate, US’ rivals gain market

On average, 30 per cent of the apples, cherries, and pears produced in the Pacific Northwest are exported and India was once a strong market. As growers have watched hard-earned market share and sales evaporate, their rivals in other countries have captured more of the market share, they said.

In their letter dated January 10, the lawmakers urged Tai and Raimondo to raise the issue with visiting Indian Commerce and Industry Minister Piyush Goyal. The India-US Trade Policy Forum (TPF) meeting was held on January 11.

“The damage inflicted by the retaliatory tariffs on tree fruit growers, their employees, and communities is clear and a solution is long overdue. On behalf of the many stakeholders throughout our region, we appreciate your attention to this matter,” the letter said.

“Following the TPF, we request that you meet with members of the Pacific Northwest tree fruit industry to discuss the next steps to remove the retaliatory tariffs,” it said.

Increase in production cost adds to woes

According to the lawmakers, continued export losses coincide with the ongoing rise in cost-of-production that is forcing multi-generational family farms out of business.

The Red Delicious variety accounts for nearly all the exports to India. Families operating legacy Red Delicious orchards, many of whom may not have the financial capacity to modernise their orchards, are disproportionately affected by the tariffs, the lawmakers wrote.

This year the Red Delicious crop is the lowest since 1968. Corporate, out-of-state, entities are acquiring and consolidating larger operations, while smaller farms simply go out of business, they said.

(With agency inputs)