Apples from the US to compete on the level playing field with other countries
With the decision to the resolution of six outstanding World Trade Organisation (WTO) disputes between the US and India through mutually agreed solutions as jointly communicated during the official state visit of the Prime Minister to the USA, India will remove additional duties on eight US products, including apples.
The decision will not result in any negative impact on domestic apple producers and will result in competition in the premium market segment ensuring better quality at better prices for consumers.
After the removal of this duty, the apples from the US would compete on a level playing field with other countries.
The decision will ensure that only premium quality apples could be imported for which there exists a specific market segment and specific demand.
An additional 20 per cent duty was imposed on US apples in 2019 in response to USA’s measure to increase tariffs on certain steel and aluminium products. There is no reduction on Most Favoured Nation (MFN) duty on apples which is still applicable on all imported apples including in the USA at 50 per cent.
The import of apples from the world has been stable in the range of $ 239 – 305 million (except in 2021-22 when it was $ 385 million) in the last five financial years since the application of these additional duties on US apples. The import of apples from the USA has decreased from $ 145 million (127,908 Ton) in FY 2018-19 to only $ 5.27 million (4,486 Ton) in FY 2022-23.
The market share of the US apples was taken by other countries due to the imposition of additional retaliatory duty on US apples. This is reflected as the import of apples from countries other than the US increased from $ 160 million in FY 2018-19 to $ 290 million in FY 2022-23. Turkey, Italy, Chile, Iran and New Zealand are other top exporters to India of apples which took the market share of the US.
