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

Summary <strong>of</strong> Views <strong>of</strong> Interested Parties 1
Almond Board <strong>of</strong> California 2
The Almond Board <strong>of</strong> California (ABC) runs programs on behalf <strong>of</strong> U.S. almond growers
in the areas <strong>of</strong> industry information <strong>and</strong> statistics, nutrition research, global marketing,
food safety, environmental stewardship, <strong>and</strong> production research. ABC programs are
funded through a m<strong>and</strong>atory assessment on almond growers pursuant to a U.S.
Department <strong>of</strong> Agriculture (USDA) federal marketing order.
In its written submission <strong>and</strong> its direct hearing testimony, the ABC highlighted the
history <strong>of</strong> its trade relationship with <strong>India</strong>, the factors in <strong>India</strong> that contribute to the
growing market there, <strong>and</strong> the positive effect that <strong>India</strong>’s current specific tariff on
almonds has on transparent <strong>and</strong> predictable trade for U.S. almonds. The ABC noted
several statistics to illustrate the importance <strong>of</strong> U.S. almond trade with <strong>India</strong>: (1) Export
markets currently constitute 70 percent <strong>of</strong> the U.S. almond industry’s total shipments.
(2) In 2008, almonds were the largest U.S. agricultural export to <strong>India</strong>, valued at
$177 million. (3) Given the last three years (marketing years 2006/07–2008/09) <strong>of</strong> record
almond shipments to <strong>India</strong>, the U.S. industry estimates that <strong>India</strong> could triple its import
volume in the next 10 years.
The ABC indicated that several factors have contributed to the expansion <strong>of</strong> U.S. almond
exports to <strong>India</strong> over the last several decades. The ABC attributed the U.S. almond
industry’s success thus far to its ability to take advantage <strong>of</strong> the growing <strong>India</strong>n middle
class <strong>and</strong> its rising disposable income as well as the general greater interest in health <strong>and</strong>
wellness in <strong>India</strong>. The ABC noted that almonds, unlike other food imports, hold a unique
place in <strong>India</strong>n food culture <strong>and</strong> heritage, a situation on which the U.S. industry has been
able to capitalize. In addition, the ABC noted that the stable duty on almond imports has
allowed U.S. exporters <strong>and</strong> <strong>India</strong>n importers to better implement longer-term planning.
Although duties would frequently change in the past, resulting in extreme market
volatility, the current specific duty rate has eliminated a degree <strong>of</strong> financial risk for U.S.
almond exporters, according to the ABC. The organization noted in its statement that
“[t]he California almond industry’s experiences with tariff <strong>and</strong> nontariff issues have
largely been addressed in consultation with U.S. government <strong>and</strong> <strong>India</strong>n authorities over
the years, <strong>and</strong> are no longer viewed as a significant impediment to future growth.” In his
direct hearing testimony, Mr. Tormey similarly noted that the <strong>India</strong>n duty on almond
imports is one economic factor that U.S. exporters weigh in establishing market prices for
almonds in <strong>India</strong>, but that U.S. exporters consider the duty to be transparent <strong>and</strong>
predictable <strong>and</strong> no longer a market distorting barrier.
1 This chapter <strong>of</strong> the report summarizes the testimony presented at the Commission’s hearing <strong>and</strong> written
submissions filed with the Commission during this investigation. In many instances, the chapter reflects only
the principal points made by the particular party. The views expressed in the summarized materials should be
considered to be those <strong>of</strong> the submitting parties <strong>and</strong> not necessarily the Commission. In preparing this
summary, Commission staff did not attempt to confirm the accuracy <strong>of</strong> or otherwise correct information
summarized. For the full text <strong>of</strong> hearing testimony <strong>and</strong> written submissions, see entries associated with
Investigation No. 332-504 at the Commission’s Electronic Docket Information System
(http://searchapp.usitc/edis3/app).
2 USITC, Hearing transcript, April 21, 2009, 24–29 (testimony <strong>of</strong> Brian Tormey, Premier Almonds on
behalf <strong>of</strong> the Almond Board <strong>of</strong> California); Almond Board <strong>of</strong> California, written submission to the
Commission, June 26, 2009.
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