WASHINGTON – United States Trade Representative Katherine Tai announced June 22 that the United States and the Republic of India have agreed to terminate six outstanding disputes at the World Trade Organization. India also agreed to remove retaliatory tariffs, which it had imposed in response to the U.S. Section 232 national security measures on steel and aluminum, on certain U.S. products, including chickpeas, lentils, almonds, walnuts, apples, boric acid and diagnostic reagents.
These tariff cuts will restore and expand market opportunities for U.S. agricultural producers and manufacturers. The resolution also maintains the integrity of the U.S. Section 232 measures. This announcement comes as President Biden welcomed Prime Minister Narendra Modi to the United States for an Official State Visit.
“Prime Minister Modi’s visit has underscored the importance of the U.S.-India bilateral relationship and our cooperation on a range of shared priorities. Today’s agreement represents the culmination of intensified bilateral engagement over the last two years, including through the U.S.-India Trade Policy Forum, to deepen our economic and trade ties,” said Ambassador Tai. “As a result of our work, U.S. agricultural producers and manufacturers will now enjoy renewed access to a critical global market and we will strengthen our trade relationship with one of our closest partners. I look forward to continue working with my counterpart, Minister Goyal, as we identify additional ways to bring our people and our economies together.”
The six World Trade Organization disputes that will be terminated can be found below. These include three disputes initiated by India and three disputes initiated by the United States.
- United States – Countervailing Measures on Certain Hot-Rolled Carbon Steel Flat Products from India (DS436);
- India – Certain Measures Relating to Solar Cells and Solar Modules (DS456);
- United States – Certain Measures Relating to the Renewable Energy Sector (DS510);
- India – Export Related Measures (DS541);
- United States – Certain Measures on Steel and Aluminium Products (DS547); and
- India – Additional Duties on Certain Products from the United States (DS585).
In line with the close partnership highlighted by the Official State Visit of Prime Minister Modi, the agreement opens a new chapter of bilateral cooperation that will deepen and diversify the trade relationship between the United States and India.
In response to the news, Brian Kuehl, Executive Director of Farmers for Free Trade, the nation’s leading ag trade advocacy coalition made up major food and ag groups, released this statement:
“India has always represented an enormous market for American ag exports. While there has long been frustration over unnecessary barriers to entry into the Indian market, today’s announcement is a positive step forward in removing tariffs and opening trade. We are particularly pleased to see that recent retaliatory tariffs on apples, chickpeas, lentils, almonds and walnuts are being removed. The fact that they were ever in place is a reminder of the damage that trade wars cause here at home.
We hope this truly represents a ‘new beginning’ as Prime Minister Modi touted. However, understanding the difficulties American ag has historically faced in India, we will also need to continue to roll up our sleeves to reach agreements that further open the Indian market to American ag exports.”
The California walnut industry brought this ongoing issue to the attention of the Biden Administration early in the presidency and appreciate their tenacity and commitment which led to this agreement.
“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 long-term strategic growth and market development plan.” said Pam Graviet, Senior Director of Global Programs for the California Walnut Commission. “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.”
The California walnut industry is grateful for efforts by federal, state, local elected officials, regulators, and their staff for diligently keeping this topic on the forefront of trade discussions.
Robert Verloop, the Chief Executive Officer for the California Walnut Commission said, “the California walnut growers have been severely impacted by a host of unprecedented events over the last few years; including the various trade tariffs, COVID pandemic-induced supply chain and transportation disruptions, global economic downturn, inflationary pressures, high dollar values, the complications brought on by the war in Ukraine and the persistent drought and heat wave that severely impacted our 2023 crop.”
“Tree nut growers, most of whom are multi-generational 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. 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” added Verloop.
Graviet stated, “California walnuts are perfectly aligned to meet the global demands for more healthy, nutritious, and great tasting plant-based foods. The removal of the retaliatory tariff in India will enable our growers to help meet these demands in India. We thank our Indian trade partners and retailers for their ongoing support and commitment to California walnuts and look forward to building greater distribution and consumption of our walnuts.”
“We are greatly pleased to have this issue resolved so that US almonds can once again compete fairly in one of the largest international markets,” said Aubrey Bettencourt, President & Chief Executive Officer of the Almond Alliance.
She noted that the outcome was the result of ongoing negotiations between the two countries during the past several months.
“While a lot of people were involved in making this happen, I’d especially like to recognize the role of several members of the California Congressional delegation,” Bettencourt said. “Senator Alex Padilla, Speaker Kevin McCarthy and U.S. Representative Jim Costa made major contributions to this effort. Without their leadership, these onerous trade barriers might very well still be in place.”
The Joint Statement on the 13th Ministerial-level meeting of the United States-India Trade Policy Forum, which was held on January 11, 2023, can be found here.
— Office of the U.S. Trade Representative
— Farmers for Free Trade
— California Walnuts
— Almond Alliance
