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After prodding by Cantwell and Schrier, India agrees to resolve tariffs that 'all but shut down' American apple imports

June 22, 2023

NCW — The Indian government has agreed to remove a retaliatory tariff that Washington farmers say resulted in drastically reduced apple exports to the country for the past four years.

The news came Thursday afternoon during Prime Minister Narendra Modi’s visit to Washington, D.C., and comes after frequent grumbles from Washington’s agricultural community and pleas from the state’s congressional delegation.

In the past several months, U.S. Sen. Maria Cantwell (D-WA) and Rep. Kim Schrier, (WA-08) have repeatedly led discussions on the tariffs. Cantwell traveling to India earlier this year, where she raised the issue of the tariffs to Modi in person.

India has agreed to remove an additional 20% tariff placed on the crops in 2019 within 90 days. The export of American pulse crops to the country has decreased from $180 million in 2017 to roughly $1 million now.

According to Cantwell, Washington apple exports have dropped from $120 million in 2017 to less than $1 million this year.

Both Schrier and Cantwell praised the move as a victory for Washington’s agricultural producers. According to Schrier, 30% of apples, cherries and pears produced in the Pacific Northwest are exported.

“This is a really, really big deal for the 8th District and the Wenatchee Valley,” Schrier said in a Thursday afternoon interview with The World. “We are very, very excited about regaining that market and making sure it doesn’t fall into the hands of Turkey and Iran.”

Schrier made the comments following Modi’s address to a joint session of congress. Schrier said the speech highlighted the strategic partnership the two countries have.

In an interview with The World, Cantwell praised the move and the security it would bring to the roughly 40,000 agricultural jobs in the state.

“I was literally giddy today and when I found out,” Cantwell said, adding the move took several years of work and cooperation.

According to Cantwell, the move will open up a potential market for Washington lentils and chickpeas. Washington is the largest U.S. producer of chickpeas and the third largest producer of lentils.

Cantwell said The CHIPS and Science, passed in August, helped pave the way to today’s announcement.

Local farmers also celebrated the news.

“This is great news for apple growers,” said Jorge Sanchez, of the Northern Fruit Company, in a press release from Cantwell. “India was a critical market for the Washington apple industry, and the tariffs have hit producers of Red Delicious apples especially hard in the last few years. We look forward to the opportunity to rebuild this market, and thank Senator Cantwell and members of the Pacific Northwest congressional delegation for their hard work and dedication in making this happen.”

Todd Fryhover, president of the Washington Apple Commission, praised the move and Cantwell’s work on resolving the tariffs.

“This announcement is a big win for trade policy and Washington apple growers,” Fryhover said in a Thursday press release. “The Washington apple industry has worked hard to develop the Indian market for our world-class apples, and this will help us try to regain our lost market position. We feel confident that Indian consumers will benefit by having high quality Washington apples once again available at accessible prices.”

Lawmakers have frequently made appeals in recent months for an end to the tariff. Last week, four U.S. Senators including Cantwell and fellow Washington Senator Patty Murray sent a letter to President Joe Biden asking the president to address the tariffs during Modi’s visit.

In January, the entire Washington congressional delegation, led by Cantwell and Schrier, sent a letter to U.S. Trade Representative Katherine Tai and Secretary of Commerce Gina Raimondo seeking a resolution.

Cantwell also brought up the tariffs during a senatorial delegation to India and a Senate Finance Committee hearing earlier this year.

At a roundtable to discuss the upcoming farm bill negotiations, several Washington agricultural leaders brought up the need to address the tariffs to Cantwell and Sen. Debbie Stabenow (D-MI).

Kate Tynan, senior vice president of the Northwest Horticultural Council, estimated that tariffs in China and India resulted in an $800 million cost to growers over the past four years.

Senator Brad Hawkins, R-East Wenatchee, also praised the announcement.

“This is super exciting for our region and apple growers. Congresswoman Schrier shared the good news with me in a phone call, and I’m grateful to her and Washington’s Congressional delegation for helping to make this happen,” he wrote in an email Thursday. “It’s terrific news for Washington and India. Our growers will get better access into their market, and they’ll get to enjoy our delicious apples. It’s a win-win.”

The move was part of an announcement that India and the U.S. government agreed to terminate six outstanding disputes at the World Trade Organization.

According to Reuters, the Biden Administration reached agreement on a series of deals including semiconductors, critical minerals, technology and space cooperation.

With the series of new deals, Schrier said she is optimistic about future cooperation between the countries. Cantwell said it would have been “ridiculous” to leave the tariff in place after the countries made progress in so many sectors.

During his speech Thursday, Modi announced India will open a consulate in Seattle, which Cantwell said could help resolve any future disputes on agriculture or technology.