US-India WTO poultry dispute resolves with India cutting tariff on turkey imports

11 Sep 2023 --- India has agreed to cut tariffs on its imports of US frozen whole turkeys and frozen turkey parts, reducing the basic tariff on the products from 30% to 5%. The agreement further includes frozen duck, fresh and frozen blueberries and cranberries, and frozen, dried and processed varieties of blueberries and cranberries.

The deal marks the resolution of the outstanding WTO poultry dispute between the US and India.

This comes at a time when US President Joe Biden met with Indian Prime Minister Narendra Modi in New Delhi, India, earlier this month for the G20 Leaders’ Summit.

According to the Office of the United States Trade Representative (USTR), the tariff reduction will expand economic opportunities for the US agricultural producers in a “critical market and help bring more US products to customers in India.”

“This move creates an important new market for the US turkey producers and will give Indians more affordable access to a nutritious, delicious protein,” says Joel Brandenberger, president and CEO of the National Turkey Federation (NTF).

NTF is the sole national trade association exclusively representing the turkey industry; its members account for more than 95% of all US turkey production.

Reducing significant barriers
In August, Katherine Tai, US Trade Representative, met with Piyush Goyal, India’s Minister of Commerce and Industry, following the G20 meeting, where they discussed the nations’ shared desire to resolve the long-term dispute at the World Trade Organization (WTO), India – Measures Concerning the Importation of Certain Agricultural Products. 

In June, India agreed to remove retaliatory tariffs on certain US products, such as chickpeas, lentils, almonds, walnuts, apples, boric acid and diagnostic reagents.“Resolving this last outstanding WTO dispute represents an important milestone in the US-India trade relationship while reducing tariffs on certain US products enhances crucial market access for American agricultural producers,” says Ambassador Tai.

The new agreement stands to benefit both nations by reducing major barriers due to restrictively high tariff rates and some non-tariff barriers. 

Up to the present agreement, India maintained a 30% duty on US turkey products, which reduced its affordability for Indian consumers while also preventing US exporters from partaking in the fast-growing market. 

A new chapter
The agreement resolves the remaining long-standing dispute and opens a “new chapter of bilateral cooperation” that will deepen the trade relationship between the US and India, notes the USTR.

In June, the US and India agreed to put a stop to six outstanding disputes at the WTO. India also agreed to remove retaliatory tariffs on certain US products, such as chickpeas, lentils, almonds, walnuts, apples, boric acid and diagnostic reagents.

“Prime Minister Modi’s visit has underscored the importance of the US-India bilateral relationship and our cooperation on a range of shared priorities,” Ambassador Katherine Tai said on the occasion.

He further pointed out that the agreement represented the “culmination of intensified bilateral engagement over the last two years, including through the US-India Trade Policy Forum, to deepen our economic and trade ties."

By Insha Naureen