India has announced the removal of additional duties on eight US products, including apples, as part of a resolution of six World Trade Organization (WTO) disputes between the two countries. The move is expected to restore market access for Indian steel and aluminum exports to the US. However, Commerce Ministry sources have stated that the decision will not negatively impact domestic apple producers, nor will it affect the most favored nation (MFN) duty on all imported apples, including those from the US, which remains at 50%.
Previously, an additional 20% tariff was imposed on US apples in 2019 in response to the US’ introduction of tariffs on certain steel and aluminum products. However, the decision to remove the duty on US apples is expected to create competition in the premium market, which will result in better quality apples being imported at better prices. The sources added that only premium quality apples could be imported since there is a specific market segment and demand for such produce.
The import of apples from the world has remained stable between $239 million and $305 million in the last five financial years since the introduction of these additional duties on US apples. However, the import of US apples has reduced drastically from $145 million to only $5.27 million in 2022-23. The market share of US apples has been taken over by other countries due to the imposition of the additional retaliatory duty.
The removal of additional duties on US apples imports is expected to have a positive impact on the import market in India, creating further competition and potentially reducing prices for consumers. However, ensuring the well-being of domestic apple producers remains a priority.