India’s Retaliatory Traffic Effects Washington Apple Industry; Apple Export to India Mostly Low
Indian government back in June 2018 had nearly imported 7.8 million 40 pound boxes of 2017 apple crop from Washington State. India set a record by importing a large amount of Washington State apple crop.
The Indian government, by the end of the season, imported 8 million boxes. India could overtake Canada and become the second states export market. Currently, Canada holds the second position for exporting Washington State apple crops.
However, the Indian government imported only a few quantities of 2018 apple crop boxes. According to a report on June 15th, Washington State had dispatched apple crop of 2.6 million boxes to India, which is much lower than the previous year.
Now, the Washington state believes export of the state’s apple crop to India will significantly slow down due to the imposition of traffic by the Indian government. The Indian government has decided to impose 20 percent retaliatory tariff and thus increases the total duty to 70 percent.
According to The Yakima Herald-Republic, the Indian government not only imposed a tariff on apples but also on other 27 products of the United States on Sunday. The move of the Indian government comes at the time when the United States finally closed a preferential trade program with India. The preferential trade program ended in 2019.
The Indian government was planning to impose tariffs on the US products from August 2018 onwards. Indian officials were negotiating with the US members and many times delayed imposing its tariff. The US had already imposed duties on Indian products such as steel and aluminum. Indian government just responded to the US duties.
The new tariff imposition could be positive news for India, but Washington State will be affected by it and certainly bad news for the state and the export-based industry.
Due to trade conflict, export industries have been impacted negatively. Washington State is the only State accountable for exporting 30 percent of the apple crop.
In June 2018 apple crop of about 94.2 million boxes were dispatched out of which 27 percent were related to export, nearly 25.4 million boxes.
The trade conflict of US with India is unlikely to resolve, Northwest Horticulture Council President, Mark Powers said. He also represents the tree fruit industry of the region in public policy issues along with trade.
Powers associated with a small delegation in Washington D.C and Washington State a week ago, in order to address various issues with the presidential administration. He was even discussing the US trade conflict with India.
Powers stated: “Frankly, we didn’t hear any rays of optimism on that front.”
Other apple producing countries such as Chile and New Zealand will have an advantage due to India’s tariff imposition.
Apple industry of Washington State started exporting apples to India from 1999, within months when the US allowed imports.
The reason for India importing record break 2017 apple crops was because India had halted importing apples from China, Washington Apple Commission Spokeswoman, Tori Lynn Adams informed.
The imposition of the tariff will affect Red Delicious growers, Powers stated. Red Delicious growers exported 90 percent of apples in 2018 to India.
Apart from this, a few weeks back, Mexico took an important step by ending its 20 percent tariff on apples by resolving the trade dispute with the US on the products of Mexico, namely aluminum and steel. This relief could last for a short time as US plans to impose new duties on Mexico goods only if Mexico does not take necessary steps to stop invading of illegal migrants to the US.