India: Effects of Tariffs and Nontariff Measures on U.S. ... - USITC

More documents

Recommendations

Info

found that 39 percent <strong>of</strong> the rural population lacks access to an all-season road. 92 Planning documents for <strong>India</strong>’s Eleventh Five-Year Plan report that as <strong>of</strong> March 2007, 35 percent <strong>of</strong> villages were not yet connected by all-weather roads. The current plan calls for all towns <strong>and</strong> villages <strong>of</strong> more than 1,000 to be connected by the end <strong>of</strong> 2009. 93 The efficiency <strong>of</strong> <strong>India</strong>n ports lags that <strong>of</strong> other major trading nations in Asia but is not reported as a significant barrier to U.S. agricultural exports. When asked about major barriers to imports, only two industry representatives mentioned that unloading at <strong>India</strong>n ports was unusually slow, <strong>and</strong> neither reported that delays were caused by deficiencies in port infrastructure. 94 Capacity <strong>and</strong> volume <strong>of</strong> traffic have increased significantly in recent years, <strong>and</strong> planned expansions under the Eleventh Five-Year Plan will more than double port capacity. 95 Between FY 2001/02 <strong>and</strong> FY 2006/07 average ship berth output (ASBO) increased 76 percent, <strong>and</strong> average ship turnaround time (ASTA) declined 39 percent. 96 However, a report for the Confederation <strong>of</strong> <strong>India</strong>n Industry noted that in 2006, ASTA at <strong>India</strong>n ports was approximately 20 times longer than in Singapore <strong>and</strong> that ASBO in <strong>India</strong>n ports lags that <strong>of</strong> other major shipping nations. 97 Since FY 2006/07, ASBO has improved but ASTA has worsened, both slightly. 98 <strong>Effects</strong> on U.S. Exports Many <strong>of</strong> the inefficiencies that exist in the <strong>India</strong>n system do not disproportionately disadvantage imports over domestic products. Transportation infrastructure, for example, increases costs for all firms in <strong>India</strong>. The regulations imposed under the ECA restrict domestic production as well as imports. The poor state <strong>of</strong> the electric power grid <strong>and</strong> the high cost <strong>of</strong> electricity create problems for all firms with a presence in <strong>India</strong>. The absence <strong>of</strong> an integrated market for intermediate goods <strong>and</strong> the lack <strong>of</strong> consistent water supplies may increase costs on all agribusiness firms with production in <strong>India</strong>. 99 However, some characteristics <strong>of</strong> the <strong>India</strong>n marketing <strong>and</strong> distribution system do adversely impact imports more than domestic products. Price volatility <strong>of</strong> some products due to deficiencies in storage capacity, combined with the long <strong>and</strong> uncertain delays in approving import licenses, can serve as a barrier to imports <strong>of</strong> agricultural commodities. 100 Some imports may require storage <strong>and</strong> h<strong>and</strong>ling that is not readily available in <strong>India</strong>. Organized retailers <strong>and</strong> suppliers, both foreign <strong>and</strong> domestic, have some costs that are not borne by their unorganized competitors. Current food safety regulations are unevenly applied within the <strong>India</strong>n food distribution system. Organized retailers <strong>and</strong> suppliers are forced to comply with regulations <strong>and</strong> bear the resultant costs but gain little in return. For example, regulations specify that packaging for edible oils should not be reused. 92 World Bank, Rural Roads, 2007, 1; World Bank, World Development Report 2008, 322. 93 Government <strong>of</strong> <strong>India</strong>, Planning Commission, Eleventh Five Year Plan: 2007–12, vol. 3, 2008, 294. 94 Industry representatives, interviews by Commission staff, New Delhi, <strong>India</strong>, May 26, 2009, <strong>and</strong> Mumbai, <strong>India</strong>, May 28, 2009. 95 Government <strong>of</strong> <strong>India</strong>, Ministry <strong>of</strong> Shipping, Road Transport <strong>and</strong> Highways, Report <strong>of</strong> the Working Group for the Port Sector, March 2007, 19; Government <strong>of</strong> <strong>India</strong>, Planning Commission, Eleventh Five Year Plan: 2007–12, vol. 3, 2008, 314, 318. 96 Government <strong>of</strong> <strong>India</strong>, Planning Commission, Eleventh Five Year Plan: 2007–12, vol. 3, 2008, 315. 97 Cygnus, “Background Note—Logistics,” September 2006, 5. 98 Government <strong>of</strong> <strong>India</strong>, Ministry <strong>of</strong> Finance, Economic Survey 2008–09, 244. 99 L<strong>and</strong>es, The Environment for Agricultural <strong>and</strong> Agribusiness Investment in <strong>India</strong>, July 2008, 17. 100 Industry representative, interview by Commission staff, New Delhi, <strong>India</strong>, June 4, 2009. 7-18
Organized suppliers must comply with this requirement, but as most edible oil is sold in the unorganized market, the majority <strong>of</strong> their competitors do not have this expense. 101 Uniform application <strong>of</strong> food safety laws would be expected to favor organized retailers over unorganized competitors. 102 An inefficient marketing <strong>and</strong> distribution system can also confer unintended benefits on exports from all countries, including the United States. For example, <strong>India</strong>’s poor storage <strong>and</strong> transportation infrastructure leads to product losses, deterioration in quality, <strong>and</strong> increased costs for domestically produced agricultural goods. These problems may actually provide opportunities for U.S. exports in the <strong>India</strong>n market. The situation with apples, which are a popular fruit in <strong>India</strong>, <strong>of</strong>fers a good illustration <strong>of</strong> this dynamic. <strong>India</strong> produces large quantities <strong>of</strong> fresh apples in the northern part <strong>of</strong> the country, but few can be efficiently transported over l<strong>and</strong> in a timely manner to <strong>India</strong>’s southern regions. 103 Instead, U.S. fresh apples are <strong>of</strong>ten shipped through southern <strong>India</strong>n ports to satisfy <strong>India</strong>n dem<strong>and</strong>. 101 Industry representatives, interviewed by Commission staff, New Delhi, <strong>India</strong>, May 6 <strong>and</strong> June 1, 2009. Organized suppliers do receive a small premium for a br<strong>and</strong>ed product. 102 The U.S. Food Law <strong>of</strong> 1908, for instance, helped foster the growth <strong>of</strong> organized retail in the United States. Joseph et al., Impact <strong>of</strong> Organized Retailing on the Unorganized Sector, May 2008, 33. 103 Deodhar, L<strong>and</strong>es, <strong>and</strong> Kriss<strong>of</strong>f, “Prospects for <strong>India</strong>’s Emerging Apple Market,” January 2006, 17, 21, 25. 7-19
Page 1 and 2:
United States International Trade C
Page 3 and 4:
U.S. International Trade Commission
Page 5:
Abstract This report describes <str
Page 8 and 9:
TABLE ES.1 India:
Page 10 and 11:
U.S. agricultural products face str
Page 12 and 13:
U.S. Foreign Direct Investment U.S.
Page 15 and 16:
CONTENTS Page Abstract ............
Page 17 and 18:
CONTENTS―Continued Chapter 6 <str
Page 19 and 20:
CONTENTS―Continued Figures 1.1. <
Page 21 and 22:
ACRONYMS AND TERMS AAY Antodaya Ann
Page 23:
ACRONYMS AND TERMS—Continued RGGV
Page 26 and 27:
TABLE 1.1 India: A
Page 28 and 29:
FIGURE 1.1 India:
Page 30 and 31:
India’s central
Page 32 and 33:
Despite their weak economic pr<stro
Page 34 and 35:
Approach Current India</str
Page 36 and 37:
Bibliography Birner, Regina, Surupt
Page 38 and 39:
World Bank. Agriculture for Develop
Page 40 and 41:
FIGURE 2.1 India:
Page 42 and 43:
TABLE 2.1 India: A
Page 44 and 45:
FIGURE 2.3 India:
Page 46 and 47:
premium); (2) India</strong
Page 48 and 49:
include government export restricti
Page 50 and 51:
TABLE 2.3 India: A
Page 52 and 53:
FIGURE 2.6 India:
Page 54 and 55:
Exports by Major Trading Partner <s
Page 57 and 58:
CHAPTER 3 Domestic Consumption Over
Page 59 and 60:
TABLE 3.2 India: P
Page 61 and 62:
more likely to have been exposed to
Page 63 and 64:
BOX 3.3 Indian Con
Page 65 and 66:
TABLE 3.3 India: T
Page 67 and 68:
are expected to see income growth <
Page 69 and 70:
Food Preferences India</str
Page 71 and 72:
Regional Variation Geographic <stro
Page 73 and 74:
CCC. “Know India
Page 75 and 76:
CHAPTER 4 Indian A
Page 77 and 78:
For most crops, however, In
Page 79 and 80:
The Farm Sector soybeans 29 —but
Page 81 and 82:
Food processing in India</s
Page 83 and 84:
BOX 4.1 The Central Government’s
Page 85 and 86:
BOX 4.2 Does the Minimum Support Pr
Page 87 and 88:
August 3, 2009, New Delhi announced
Page 89 and 90:
known as zamindars, have doubled or
Page 91 and 92:
that the PFA Act was strictly enfor
Page 93 and 94:
———. Bharat Nirman: A Time-Bo
Page 95 and 96:
Organisation for Economic Co-operat
Page 97 and 98:
CHAPTER 5 TARIFFS Overview
Page 99 and 100:
sensitive. They include vegetable f
Page 101 and 102:
wholly milled rice and</str
Page 103 and 104:
The Indian governm
Page 105 and 106:
India also reporte
Page 107 and 108:
Reference Prices Reference prices,
Page 109 and 110:
Landing Fees <stro
Page 111 and 112:
Simulated Effects
Page 113 and 114: and nuts” by $0.
Page 115 and 116: 5-19 TABLE 5.4 India</stron
Page 117 and 118: Bibliography Acharya, Keya. “Thor
Page 119 and 120: Indian Express.com
Page 121 and 122: CHAPTER 6 Nontariff</strong
Page 123 and 124: foreign sources. 6 For example, SPS
Page 125 and 126: BOX 6.1 Milk and M
Page 127 and 128: BOX 6.2 Wheat—Continued Yet, <str
Page 129 and 130: perpetuated continuously. The impor
Page 131 and 132: notices that must be integrated wit
Page 133 and 134: import corn under the TRQ is too bu
Page 135 and 136: Customs Procedures India</s
Page 137 and 138: Corruption Interests within <strong
Page 139 and 140: TABLE 6.2 India: E
Page 141 and 142: Bibliography American Apparel <stro
Page 143 and 144: Mattson, Jeremy W., Won, W. Koo, <s
Page 145: ———. 2009 National Trade Esti
Page 148 and 149: TABLE 7.1 India: C
Page 150 and 151: First Point of Sal
Page 152 and 153: Private mandis Som
Page 154 and 155: approximately 65 million households
Page 156 and 157: 7-10 TABLE 7.2 India</stron
Page 158 and 159: poor communications infrastructure
Page 160 and 161: limited popularity with farmers bec
Page 162 and 163: The lack of infras
Page 166 and 167: Bibliography Banerjee, A. Dairying
Page 168 and 169: Tiwari, Shri Rajendra Kumar. “Pos
Page 170 and 171: FDI Regulations and</strong
Page 172 and 173: TABLE 8.2 India: A
Page 174 and 175: Food Processing and</strong
Page 176 and 177: There is not necessarily a strong l
Page 178 and 179: For processing of
Page 180 and 181: BOX 8.3 Restrictions on Foreign Joi
Page 182 and 183: Under certain circumstances, FDI ca
Page 184 and 185: commenced. States tend to be quick
Page 186 and 187: Bibliography Bahn, Niti, an
Page 188 and 189: International Center for Alcohol Po
Page 190 and 191: Structure of the <
Page 192 and 193: BOX 9.1 The UPOV System for Plant V
Page 194 and 195: that the public sector in I
Page 196 and 197: Whether this situation will soon ch
Page 198 and 199: The U.S.-India Bus
Page 200 and 201: eggplant, which began field trials
Page 202 and 203: Maskus, Keith E. “Intellectual Pr
Page 205: APPENDIX A REQUEST LETTER
Page 208 and 209: The Honorable Sham L. Arano
Page 211 and 212: cprice-sewell on PRODPC61 with NOTI
Page 213: APPENDIX C HEARING WITNESSES
Page 216 and 217:
ORGANIZATION AND WITNESS: Tuttle Ta
Page 219 and 220:
Summary of Views <
Page 221 and 222:
advertising and pr
Page 223 and 224:
highest in the Asia-Pacific region.
Page 225 and 226:
to U.S. exports to India</s
Page 227 and 228:
transparent sanitary regulations th
Page 229 and 230:
hotel and catering
Page 231 and 232:
Western Pistachio Association 26 In
Page 233:
APPENDIX E POTENTIAL FOR U.S. AGRIC
Page 236 and 237:
E-4 TABLE E.1 India</strong
Page 238 and 239:
Page 240 and 241:
Page 243:
APPENDIX F INDIAN AGRICULTURAL PROD
Page 246 and 247:
TABLE F.1 India: A
Page 248 and 249:
FIGURE F.1 India:
Page 250 and 251:
is in nonirrigated areas with yield
Page 252 and 253:
Consumption India
Page 254 and 255:
efrigeration. This characteristic i
Page 256 and 257:
70 percent of tota
Page 258 and 259:
eportedly preferred in southern <st
Page 260 and 261:
Cotton During MY 2003/04-2007/08, <
Page 262 and 263:
Government of <str
Page 265:
APPENDIX G UNION AND STATE/UNION TE
Page 268 and 269:
certain agricultural goods in the p
Page 270 and 271:
Bibliography Chaulan, Shri U.K. “
Page 273 and 274:
Simulation Framework The effects <s
Page 275 and 276:
Producers determine the optimal sup
Page 277 and 278:
Applied ad valorem tariff equivalen
Page 279 and 280:
We considered the possibility that
Page 281 and 282:
Estimation of <str
Page 283 and 284:
Bibliography Anderson, Kym, Mariann
show all

India: Effects of Tariffs and Nontariff Measures on U.S. ... - USITC

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?