As part of the mutually agreed solutions reached between the United States and India during the official state visit of the Prime Minister, the resolution of six ongoing disputes at the World Trade Organization (WTO) has been achieved.
Consequently, India has agreed to eliminate additional duties on eight American products, including apples. This development will facilitate the restoration of market access for Indian steel and aluminium exports to the United States.
The reports stated that the resolution will not have any adverse effects on domestic apple producers and instead will introduce competition in the premium market segment. This competition will lead to improved quality and better prices for consumers.
Following the elimination of this duty, apples from the United States will be able to compete on an equal footing with apples from other countries. The decision will guarantee that only high-quality apples can be imported, catering to a specific market segment with specific demand.
In 2019, an extra 20% duty was imposed on US apples as a retaliatory measure against the USA’s decision to raise tariffs on certain steel and aluminium products. However, it’s important to note that the Most Favoured Nation (MFN) duty on apples remains unchanged, still applicable to all imported apples, including those from the USA, at a rate of 50%.
The reports also disclosed the comparison chart of the import quantity and value between the USA and the world/other countries. After application of the additional duty on US apples, its share in the premium market segment was taken by countries like Turkey, Brazil, New Zealand, Italy, etc. as mentioned above. However, India decided to remove the additional duty.
MFN duty is normal non-discriminatory tariff charged on imports (excludes preferential tariffs under free trade agreements and other schemes or tariffs charged inside quotas). Therefore, the MFN import duty is the baseline tariff rate that is applicable to goods imported from any country, ensuring non-discriminatory trade practices.
The additional duty on imported goods is an additional tariff imposed in addition to the standard import duty. It is typically introduced to safeguard domestic industries, rectify trade imbalances, or respond to specific trade policies or actions undertaken by other nations.
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