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

The ABC further noted that the success <strong>of</strong> current <strong>and</strong> future marketing efforts in <strong>India</strong>
will be influenced by factors that are not uncommon in any developing market, such as
mature infrastructure, distribution systems, <strong>and</strong> importers’ access to capital (for
financing). Finally, in its written statement, the ABC cited several concerns that it views
will impact future sales to <strong>India</strong>: (1) <strong>India</strong>’s bureaucratic system <strong>and</strong> nontransparent
nature <strong>of</strong> regulatory development; (2) <strong>India</strong>’s development <strong>of</strong> st<strong>and</strong>ards (for pesticide
residues, commodity st<strong>and</strong>ards, <strong>and</strong> food safety regulations) independent <strong>of</strong> globally
recognized st<strong>and</strong>ards; <strong>and</strong> (3) a potential free trade agreement between <strong>India</strong> <strong>and</strong>
Australia, <strong>India</strong>’s second-largest import supplier <strong>of</strong> almonds.
Biotechnology Industry Organization 3
In its written submission, the Biotechnology Industry Organization (BIO) stated that it
represents more than 1,200 biotechnology companies, academic institutions, state
biotechnology centers, <strong>and</strong> related organizations in the United States <strong>and</strong> 31 other nations.
BIO asserted that <strong>India</strong>’s lack <strong>of</strong> tolerance for the low-level presence <strong>of</strong> genetically
engineered commodities that might be inadvertently present in shipments <strong>of</strong> grain from
the United States acted as a significant trade barrier. BIO requested that the United States
prioritize the issue in bilateral discussions with <strong>India</strong>. BIO stated that it is opposed to a
policy under consideration in <strong>India</strong> that would require the labeling <strong>of</strong> all products derived
from agricultural biotechnology. Instead, BIO expressed its support for science-based
regulations that would require labeling only when the product has been significantly
changed nutritionally or in health-related characteristics.
Finally, BIO identified several intellectual property issues <strong>of</strong> concern in <strong>India</strong>, including
the alleged use <strong>of</strong> compulsory licenses that go beyond the letter <strong>and</strong> spirit <strong>of</strong> the Doha
Declaration, exceptions for transgenic plants <strong>and</strong> animals in the patent laws, the
requirement that the source <strong>and</strong> geographical origins <strong>of</strong> biological material used in an
invention be disclosed in patent applications, <strong>and</strong> the lack <strong>of</strong> meaningful protection for
test data submitted to support the regulatory approval <strong>of</strong> pharmaceuticals <strong>and</strong> agricultural
chemicals.
Blue Diamond Growers 4
In its written statement <strong>and</strong> its direct hearing testimony, Blue Diamond Growers
described itself as a nonpr<strong>of</strong>it, farmer-owned grower cooperative <strong>and</strong> the largest
processor <strong>and</strong> marketer <strong>of</strong> almonds in the world. In its written statement, the cooperative
detailed the history <strong>of</strong> cooperation among Blue Diamond Growers, the U.S. government,
<strong>and</strong> the <strong>India</strong>n government in successfully opening <strong>and</strong> maintaining market access for
U.S. almonds in <strong>India</strong>, dating back to the early 1980s. According to Blue Diamond
Growers, through its efforts the <strong>India</strong>n government first allowed U.S. almond imports
into the country in 1981 at tariff rates <strong>of</strong> 120–190 percent. Over time, that rate fluctuated,
<strong>and</strong> today U.S. almonds are subject to 18–20 percent ad valorem equivalent tariffs. As the
pioneer in bringing U.S. almonds to <strong>India</strong>, Blue Diamond Growers stated that it has been
active in product promotion in <strong>India</strong> <strong>and</strong> created a mass market for almonds through
3 Biotechnology Industry Association, written submission to the USITC, June 26, 2009.
4 USITC, Hearing transcript, April 21, 2009, 20–24 (testimony <strong>of</strong> Julian Heron, Blue Diamond Growers);
Blue Diamond Growers, written submission to the USITC, March 24, 2009.
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