USTR announces repeal of India’s tariff on U.S. apples, walnuts

Industry organizations are praising a June 22 announcement from U.S. trade officials that India will soon lift its 20% retaliatory tariff on some U.S. agricultural products.

The Office of the United States Trade Representative has reported that India will lift its tariff on apples and walnuts produced in the U.S. within the next 90 days, according to a news release.

U.S. Apple was an invited guest of the White House at the arrival ceremony for India’s Prime Minister Narendra Modi, the group said in a news release.

“We were honored to be part of this important day for U.S.-India relations,” U.S. Apple President and CEO Jim Bair said in the release. “U.S. apple growers can now begin the work of competing for, and hopefully regaining, this critical market. We look forward to once again shipping great apples to this valued trading partner.”

The Northwest Horticultural Council has advocated for the repeal of the retaliatory tariff since its announcement by India in 2018, the group said.

This tariff has had a significant economic impact on apple growers. India was once the second largest export market for Washington apples, but exports to India dropped more than 99%, from $120 million in 2017 to barely $760,000 this season, the release said.

Washington growers lost substantial market share to foreign competitors and hundreds of millions of dollars in export sales over the last four-plus years, the release said.

With the removal of this damaging tariff, work can now begin to rebuild this important market, Mark Powers, president of the NHC, said in a news release. Elected representatives and government officials have been actively engaged in negotiations to remove this retaliatory tariff from the time it was imposed, he said.

“This is a win for apples,” Powers said. “We are eager to get back to business in India, for our growers to quickly engage in rebuilding this important market, and to once again sell our high-quality, healthful apples to the consumers in India.”

The NHC commended the efforts by USTR, including U.S. Trade Representative Katherine Tai and Chief Agricultural Negotiator Doug McKalip, according to the release. The NHC also recognizes and appreciates the perseverance of the many U.S. government officials under Tai, as well as at the USDA, who worked toward the resolution, the group said.

“The NHC is immensely grateful to Sen. Maria Cantwell (D-Wash.) and Rep. Kim Schrier (D-Wash.) for their direct work towards the removal of the harmful tariff,” the group said. “The NHC also thanks Sens. Ron Wyden (D-Ore.) and Mike Crapo )R-Idaho), Reps. Dan Newhouse (R-Wash.) and Suzan DelBene (D-Wash.), and the rest of the Pacific Northwest congressional delegation for their continued support on this consequential issue."

Steve Reinholt, chair of the NHC’s Foreign Trade Committee, said he is thrilled with the news.

“The apple industry applauds the repeal of the retaliatory tariff, which has been holding us back since it was put in place,” Reinholt said in the release. “We are hopeful this will open the door to regain the market share we’ve lost.”

The Washington Apple Commission also hailed the development and praised those who worked toward the outcome.

“This announcement is a big win for trade policy and Washington apple growers,” commission President Todd Fryhover said in a news release.

After the Indian government imposed the added 20% duty on the importation of U.S. apples and other agricultural products, Washington state apple growers saw their market share drop from 53% to less than 1% in India, a loss of roughly $175 million, according to the release.

Fryhover said that all Washington growers want is the opportunity and chance to compete on equal terms in foreign markets.  

“The Washington apple industry has worked hard to develop the Indian market for our world-class apples, and this will help us try to regain our lost market position," Fryhover said. "We feel confident that Indian consumers will benefit by having high-quality Washington apples once again available at accessible prices.”  

The California walnut industry, which brought this ongoing issue to the attention of the Biden Administration early in the presidency, appreciates the commitment that led to this agreement, according to a news release from the California Walnut Commission.

“The California walnut industry has had a long-standing partnership with the India marketplace, which is an integral part of the industry’s overall long-term strategic growth and market development plan,” Pam Graviet, California Walnut Commission senior director of global programs, said in the release. “Indian consumers and trade partners continue to recognize the premium quality of California walnuts and the nutritional value and great taste they bring to the Indian diet. Elimination of India’s retaliatory tariffs will benefit Indian consumers and businesses, as well as the California walnut industry."

California Walnut Commission CEO Robert Verloop said in the release that the state's walnut growers have been severely affected by multiple unprecedented events over the last few years. That include the various trade tariffs, COVID-19 pandemic-induced supply chain and transportation disruptions, a global economic downturn, inflationary pressures, high dollar values, complications stemming from the war in Ukraine, and a persistent drought and heat wave that impacted the 2023 crop.
 
“Tree nut growers, most of whom are multigenerational family farms, make a long-term investment in their crops. Walnut orchards can be highly productive for over 30 years; accordingly, the growers make decisions to produce the revered California walnuts with the expectations that we have fair and equitable access to global markets which represent more than 65% of our sales," Verloop said. "The removal of this tariff is welcomed by our industry and provides a pathway to strengthening our trade relations with this important market and trading partner."