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India has cut import duty to 5-10 per cent on some fresh and processed food items, a move that is set to help the United States (US) get a greater market for products such as fresh, frozen, dried and preserved cranberries and blueberries, as well as frozen turkey.
The duty cut came into effect from Tuesday, according to a finance ministry notification. Currently, these items attract import duty of around 30-45 per cent.
While the tariff will be applicable to all countries, the decision was taken five months ago. It was as part of the larger trade dispute settlement between New Delhi and Washington at the World Trade Organization (WTO).
Fresh, frozen, as well as dried cranberry and blueberry will attract 10 per cent import duty. The levy on preserved blueberries will now be 10 per cent. For frozen turkey and preserved cranberries, the tax will be 5 per cent.
The tariff cut is unlikely to hurt the domestic market since this is an exclusive market that caters to a limited segment that wants to buy international products.
The decision with respect to India agreeing to reduce import tax on some food items was first revealed by the United States Trade Representative (USTR) on the sidelines of the G20 Leaders’ Summit in September. This came after the bilateral meeting between Prime Minister Narendra Modi and US President Joe Biden.
The decision came as part of the seventh trade dispute between India and the US at the WTO over poultry imports from Washington.
In June last year, both the countries decided to square off and close six of the seven outstanding disputes at the WTO. India, in 2015, had lost a long-standing dispute over poultry imports — mainly chicken legs — from the US.
