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

streamline regulation are commendable <strong>and</strong> represent important steps toward
harmonizing domestic st<strong>and</strong>ards with international st<strong>and</strong>ards, but that certain sanitary <strong>and</strong>
phytosanitary st<strong>and</strong>ards are not consistent with internationally recognized best practices.
The organization argued that private sector partnerships would spur innovation <strong>and</strong>
increase agricultural yields. These policies should be done in conjunction with reducing
tariff barriers, incentivizing investment, <strong>and</strong> applying best practices to safety st<strong>and</strong>ards
that will lead to benefits for <strong>India</strong>n farmers.
Welch Foods Inc. 25
In a written submission, Welch Foods Inc., a cooperative, stated that it is the processing
<strong>and</strong> marketing affiliated cooperative <strong>of</strong> the National Grape Co-operative Association, Inc.
It represents some 1,300 grower-owners <strong>of</strong> Concord <strong>and</strong> Niagara grapes, which are
grown on 50,000 acres <strong>of</strong> vineyards in New York, Pennsylvania, Ohio, Michigan, <strong>and</strong>
Washington. Welch Foods’ principal products are Concord <strong>and</strong> Niagara grape juice.
Welch Foods also produces a variety <strong>of</strong> other fruit juices, juice cocktails, jellies, jams,
preserves, juice bars, <strong>and</strong> fruit-flavored carbonated drinks. Welch Foods’ total production
value was $685 million for the 12 months ended August 31, 2008. Welch Foods markets
its products in the United States <strong>and</strong> 30 other countries <strong>and</strong> exports more than $80 million
<strong>of</strong> Concord <strong>and</strong> Niagara grape juice products, mainly to Japan, the United Kingdom,
Hong Kong, Korea, <strong>and</strong> China.
Welch Foods would like to exp<strong>and</strong> into <strong>India</strong> because the creation <strong>of</strong> new export outlets
has become increasingly essential to the financial health <strong>of</strong> its farmer-owners <strong>and</strong> the
rural economies that they help to support, but global trade distortions in the grape juice
<strong>and</strong> grape juice products markets in the form <strong>of</strong> tariffs <strong>and</strong> subsidies are preventing them
from exp<strong>and</strong>ing into countries such as <strong>India</strong>. Welch Foods stated that it has begun to
explore opportunities in the <strong>India</strong>n market. The principal barriers to Welch Foods in <strong>India</strong>
include high bound tariffs on grape juice <strong>of</strong> 85 percent <strong>and</strong> applied tariffs <strong>of</strong> 30 percent.
Welch Foods believes that it could establish annual sales <strong>of</strong> $30 million in <strong>India</strong> for its
grape juice <strong>and</strong> grape juice concentrate products if the tariffs were removed or
significantly reduced.
Welch Foods has requested that the U.S. government aggressively pursue meaningful
tariff reductions with <strong>India</strong> in the WTO Doha Round negotiations. Specifically, Welch
Foods would like to see meaningful reductions in <strong>India</strong>’s high bound rates for U.S. grape
juice <strong>and</strong> grape juice products to levels below current applied rates. In addition, because
there is limited information about <strong>India</strong>’s grape juice market <strong>and</strong> NTMs <strong>and</strong> government
regulations affecting U.S. grape juice exports to <strong>India</strong>, Welch Foods also asked that the
USITC include as much information as possible in its report about <strong>India</strong>’s grape juice
market.
25 Welch’s Foods Inc., written submission to the USITC, June 23, 2009.
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