US, EU question India's curbs on apple imports

A recent move by India to restrict apple imports into the country faced stiff opposition from the US and the European Union (EU) at a recent meeting in the World Trade Organization (WTO).

India had issued orders last month to restrict the import of apples to only one port - Nhava Sheva Port in Navi Mumbai. The move was to protect the interests of the domestic producers who suffer on account of cheap imports from the US, China, Australia, New Zealand and Italy. At the Import Licensing Committee meeting, the EU said it was “very concerned” pointing out that members ought to prevent trade distortion under their WTO commitments.  “It asked India what will happen to imported apples that are brought through other ports and requested further information about the rationale for the measure,” said WTO.

Apple imports are taxed at 50 per cent, which is the bound rate of duty, or the highest duty that India can impose based on its commitments to WTO.

Apple imports to India from countries such as the US, China, Australia, New Zealand and Italy saw a five per cent increase in 2014. Imports have risen sharply this year, which could potentially affect domestic sales. In its response, India said the measure did not fall within the definition of import licensing measure under the Agreement on Import Licensing Procedures and, thus, was not “fit for discussion under this committee”.

Australia intervened to note that the measure could be considered as an administrative procedure, which falls under the ambit of the committee’s work and that India's claim would only be valid if there were no documentation required for the import of apples.