Customs duty waiver on 8 US products

New Delhi The decision to remove 20 per cent retaliatory customs duty on imported American apples will have a ‘zero’ impact on Indian farmers as the government has sufficient policy space to support growers if there is any implication of the move, a senior government official said on Monday.

Additional Secretary in the Department of Commerce Peeyush Kumar said that India is not giving anything extra by removing this duty and it was not that we have opened a floodgate for American apples. In fact, it is a win-win deal for India as it restores market access for domestic steel and aluminium products in the American market, which was impacted due to the imposition of high duties by the US in 2018.

The decision to remove these additional duties was part of an agreement reached between India and the US, during the recent visit of Prime Minister Narendra Modi to Washington and New York. India and the US have also agreed to terminate six trade disputes at the World Trade Organisation (WTO). These remarks assume significance as Congress leader Jairam Ramesh in a tweet alleged that Prime Minister Narendra Modi "wants Apple to invest (not investigate) in India. But does he even care for the apple growers of Himachal Pradesh? He has avenged his election loss in Himachal by slashing import duties on American apples. Never before has India seen a pettier PM!"

India will remove these duties on eight US products including chickpeas, lentils and apples, which were imposed in 2019 in response to America's measure to increase tariffs on certain steel and aluminium products. India imposed retaliatory duties on 28 US products. America imposed an import duty of 25 per cent on steel products and 10 per cent on certain aluminium products on grounds of national security.