The world is looking forward to the upcoming G20 Summit in Delhi. Just prior to US President Joe Biden’s trip to New Delhi for this event and a bilateral meeting, India has made a noteworthy move by removing retaliatory customs tariffs imposed on specific American imports, like almonds and lentils. This choice, which takes effect on September 6, 2023, represents an important development in resolving trade disputes between the two countries.
Joe Biden’s Upcoming India Visit Marks Easing of Trade Tensions
The events leading up to this decision began in June 2019, when India initially increased import taxes on 28 American products. This decision was made after the United States decided to raise customs taxes on specific steel and aluminium products. The Indian Finance Ministry recently announced on September 5 that it had decided to roll back some of these tariff increases. As per the reports from The Hindu, a need to do so for the good of the public was cited as the reason.
In June 2023, Prime Minister Narendra Modi visited the United States as part of a state visit. During that trip, PM Modi and Joe Biden’s administration reached a diplomatic agreement. The leaders of the two countries decided to settle six bilateral trade disputes that were pending at the World Trade Organisation (WTO). They also expressed a desire to defuse the escalating tit-for-tat tariff increases imposed on some American goods, such as apples, almonds, and walnuts.
Almonds And Lentils Tariffs To Be Reduced
The Almond Board of California (ABC), which has enthusiastically embraced the action, is one of the notable winners of this choice. The import duties on California almond shipments to India will now go back to ₹35 per kg on inshell almonds and ₹100 per kg of almond kernels. It is significantly lower than the previously raised rates of ₹41 per kg on inshell almonds and ₹120 per kg on kernels.
The elimination of retaliatory tariffs was welcomed by Julie Adams, vice president of technical and regulatory affairs at ABC. As per The Hindu reports, she predicted that demand for California almonds in India would increase and consumer prices would decrease. She emphasised the importance of India as their top export market while also recognising the collaborative efforts of the almond industry and government officials to improve export conditions.
The parties are currently in talks to further enhance export conditions related to tariffs and address technical trade barriers in an effort to strengthen economic ties between India and the United States.
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