New Delhi, Feb 21 (KNN) In a bid to bolster trade relations with the United States, India has implemented a significant reduction in import duties ranging from 5 to 10 percent on various fresh and processed food items.

This move, effective as of Tuesday according to a notification from the finance ministry, is expected to open up greater opportunities for US exporters, particularly in products such as fresh and preserved cranberries, blueberries, and frozen turkey.

Previously subject to steep import duties ranging from 30 to 45 percent, the revised tariff structure now sees import duties of 10 percent on fresh, frozen, and dried cranberries and blueberries, while preserved blueberries will also attract a 10 percent duty.

Import duties for frozen turkey and preserved cranberries have been reduced to 5 per cent, marking a significant reduction in trade barriers for these products.

The decision to lower import duties comes as part of a broader trade dispute settlement between India and the US at the World Trade Organisation (WTO), dating back five months.

This resolution underscores the commitment of both nations to address trade imbalances and foster mutually beneficial economic ties.

While the tariff adjustments apply universally to all countries, the primary focus is on facilitating increased market access for US exporters.

The announcement follows discussions held during the G20 Leaders’ Summit in September, where Prime Minister Narendra Modi and US President Joe Biden reaffirmed their commitment to resolving trade disputes and promoting bilateral trade cooperation.

Notably, this decision stems from the seventh trade dispute between India and the US at the WTO, particularly concerning poultry imports from the US.

Previous disputes, including a longstanding disagreement over poultry imports, have been addressed through diplomatic negotiations, signalling a willingness on both sides to find common ground and promote fair trade practices.

Despite concerns about potential impacts on the domestic market, industry analysts believe that the targeted reduction in import duties is unlikely to adversely affect local producers.

Given the niche market segment that prefers international food products, the domestic market is expected to remain largely unaffected by the tariff adjustments.

With these changes now in effect, exporters from both countries can look forward to expanded market access and increased competitiveness in the global marketplace.

(KNN Bureau)