Unnecessary apple trade war rages between India and Pacific Northwest

Source: Fresh Plaza

Although in 2018, India was the second-largest purchaser of American apples -most commonly Red Delicious apples- all this has collapsed since insanely high tariffs coupled with a law that unnecessarily punishes American growers resulted in a disastrous market centered in the Pacific Northwest.

Apple producers are hoping the Biden administration will figure out a solution to the situation, as India was previously purchasing more than $150 million worth of American apples each year, the majority coming from Washington state.

In March of 2019, the Trump administration ended India’s status as a beneficiary of the American system known as Generalized System of Preferences. The GSP labels certain countries as developing, and, in order to theoretically help them develop (and, in reality, to access cheap goods and new markets), GSP countries have trade benefits such as duty-free exports to the United States.

Modernfarmer.com reports that, in response, the Indian government instituted extremely severe tariffs on 28 American goods, including almonds, walnuts and apples. The tariff on apples was a whopping 70 percent, making it very difficult for American apple growers to make a profit with what had previously been their second-largest export partner.