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

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include government export restrictions aimed at curtailing food price inflation (box 2.2), 37 a minimum export price program that makes certain <strong>India</strong>n exports less competitive in world markets, 38 <strong>and</strong> the use <strong>of</strong> export subsidies when government buffer stocks become too large. TABLE 2.2 <strong>India</strong>: Agricultural imports by major trading partner, 2003–08 (million $) Trading partner 2003 2004 2005 2006 2007 2008 Indonesia 1,119 1,423 1,195 1,160 1,469 2,315 Canada 127 110 169 194 601 566 EU-27 283 255 295 391 478 528 Burma 216 199 210 455 478 512 United States 278 215 290 323 435 497 Argentina 511 450 608 745 631 486 Malaysia 615 439 289 230 185 390 China 193 198 270 299 341 388 Australia 151 164 158 298 270 322 Brazil 145 405 530 123 164 240 Côte ďIvoire 53 89 117 127 118 203 All other 1,043 1,167 1,566 1,574 1,980 2,088 Total 4,735 5,115 5,696 5,918 7,151 8,533 Source: GTIS, World Trade Atlas Database (accessed June 8, 2009). FIGURE 2.5 <strong>India</strong>: Agricultural imports by major trading partner, 2006–08 average Indonesia 23% All other 43% Argentina 9% United States 6% Canada 6% EU27 6% Burma 7% Average total imports – $7.2 billion Source: GTIS, World Trade Atlas Database (accessed June 8, 2009). 37 USDA, FAS, <strong>India</strong>: Trade Policy Monitoring, March 15, 2009. 38 Govindan, <strong>India</strong>: Grain <strong>and</strong> Feed, February 20, 2009. 2-10
BOX 2.2 <strong>India</strong>n Agricultural Export Restrictions a Export restrictions are one <strong>of</strong> several policy instruments the central government uses to address food price inflation <strong>and</strong> maintain stockpiles <strong>of</strong> food to feed the poor through the Public Distribution System. Export restrictions are <strong>of</strong> three types—export bans, minimum export prices (MEPs), <strong>and</strong> export taxes. Export bans prohibit the export <strong>of</strong> products, regardless <strong>of</strong> international <strong>and</strong> domestic price levels. MEPs are prices below which exporters cannot sell their product, making <strong>India</strong>n goods less competitive overseas. Export taxes are levied on the value <strong>of</strong> exports, again making <strong>India</strong>n product less competitive. In 2007, the <strong>India</strong>n government began significantly restricting exports <strong>of</strong> essential commodities as global food prices increased <strong>and</strong> <strong>India</strong>n strategic food reserves, or stocks, declined below government target levels. Reportedly, these export restrictions were also imposed because <strong>of</strong> the government’s desire to keep food prices low in the run-up to the national elections in early 2009. Recent export restrictions for major commodities are described below. Wheat. On February 9, 2007, the government banned exports <strong>of</strong> wheat <strong>and</strong> wheat products until December 31, 2007, a prohibition that was later extended indefinitely. Nonbasmati rice. Effective October 9, 2007, the government banned exports <strong>of</strong> all nonbasmati rice to ensure adequate rice availability in the domestic market. On October 31, 2007, however, because <strong>of</strong> the dem<strong>and</strong>s <strong>of</strong> rice exporters, the outright ban on exports was replaced by an MEP <strong>of</strong> $425 per ton, which was later increased to $1,000 per ton on March 27, 2008. On April 1, 2008, the government again banned exports. Basmati rice. Effective March 5, 2008, an MEP <strong>of</strong> $950 per ton was imposed, which was gradually increased to $1,200 per ton on April 1, 2008. In addition, an export tax <strong>of</strong> Rs. 8,000 per ton was imposed at that time. On January 20, 2009, the MEP was lowered to $1,100 per ton, <strong>and</strong> the export tax was abolished. Corn. On March 5, 2007, the government banned exports <strong>of</strong> corn by the private sector <strong>and</strong> channeled exports only through state trading enterprises for a period <strong>of</strong> six months. Effective July 3, 2008, the government banned exports <strong>of</strong> corn through October 15, 2008. Vegetable oils. On March 17, 2008, the government banned exports <strong>of</strong> vegetable oils. This prohibition was extended to March 16, 2010. Pulses. Effective June 22, 2006, the government imposed a ban on the export <strong>of</strong> pulses, with the exception <strong>of</strong> kabuli chana (garbanzos). Milk <strong>and</strong> milk products. On February 9, 2007, the government imposed a ban on exports <strong>of</strong> skimmed milk powder, skimmed milk food for babies, whole milk, whole milk for babies, <strong>and</strong> other milk products until September 30, 2007. ______________ a Aradhey, <strong>India</strong>: Oilseeds <strong>and</strong> Products, April 16, 2009, 22; Govindan, <strong>India</strong>: Grain <strong>and</strong> Feed, February 20, 2009, 15; Govindan, <strong>India</strong>: Grain <strong>and</strong> Feed, February 20, 2008, 7; <strong>and</strong> Dhankhar, <strong>India</strong>: Dairy <strong>and</strong> Products, November 5, 2008. Exports by Product Between 2003 <strong>and</strong> 2008, <strong>India</strong>n agricultural exports to the world grew more than threefold, increasing from $6.1 billion in 2003 to $20.2 billion in 2008. Similarly, <strong>India</strong>n agricultural exports to the United States increased steadily from $585 million in 2003 to about $1.3 billion in 2008 (table 2.3). <strong>India</strong>n global agricultural exports are concentrated in a few major commodities. During 2006–08, rice, soybean meal, <strong>and</strong> cotton represented one-half <strong>of</strong> <strong>India</strong>n global agricultural exports, with sugar <strong>and</strong> frozen beef (mostly buffalo meat) accounting for an additional 20 percent (fig. 2.6). Tobacco, nuts (mostly cashews <strong>and</strong> peanuts), beverages (tea <strong>and</strong> c<strong>of</strong>fee), <strong>and</strong> spices are also exported by <strong>India</strong>. Agricultural products exported by <strong>India</strong> to the United States include nuts <strong>and</strong> a wide range <strong>of</strong> specialty products supplying ethnic grocery stores <strong>and</strong> restaurants. 2-11
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 46 and 47: premium); (2) India</strong
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
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sensitive. They include vegetable f
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wholly milled rice and</str
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The Indian governm
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India also reporte
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Reference Prices Reference prices,
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Landing Fees <stro
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Simulated Effects
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and nuts” by $0.
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5-19 TABLE 5.4 India</stron
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Bibliography Acharya, Keya. “Thor
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Indian Express.com
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CHAPTER 6 Nontariff</strong
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foreign sources. 6 For example, SPS
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BOX 6.1 Milk and M
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BOX 6.2 Wheat—Continued Yet, <str
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perpetuated continuously. The impor
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notices that must be integrated wit
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import corn under the TRQ is too bu
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Customs Procedures India</s
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Corruption Interests within <strong
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TABLE 6.2 India: E
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Bibliography American Apparel <stro
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Mattson, Jeremy W., Won, W. Koo, <s
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———. 2009 National Trade Esti
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TABLE 7.1 India: C
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First Point of Sal
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Private mandis Som
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approximately 65 million households
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7-10 TABLE 7.2 India</stron
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poor communications infrastructure
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limited popularity with farmers bec
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The lack of infras
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found that 39 percent of</s
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Bibliography Banerjee, A. Dairying
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Tiwari, Shri Rajendra Kumar. “Pos
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FDI Regulations and</strong
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TABLE 8.2 India: A
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Food Processing and</strong
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There is not necessarily a strong l
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For processing of
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BOX 8.3 Restrictions on Foreign Joi
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Under certain circumstances, FDI ca
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commenced. States tend to be quick
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Bibliography Bahn, Niti, an
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International Center for Alcohol Po
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Structure of the <
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BOX 9.1 The UPOV System for Plant V
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that the public sector in I
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Whether this situation will soon ch
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The U.S.-India Bus
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eggplant, which began field trials
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Maskus, Keith E. “Intellectual Pr
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APPENDIX A REQUEST LETTER
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The Honorable Sham L. Arano
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cprice-sewell on PRODPC61 with NOTI
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APPENDIX C HEARING WITNESSES
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ORGANIZATION AND WITNESS: Tuttle Ta
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Summary of Views <
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advertising and pr
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highest in the Asia-Pacific region.
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to U.S. exports to India</s
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transparent sanitary regulations th
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hotel and catering
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Western Pistachio Association 26 In
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APPENDIX E POTENTIAL FOR U.S. AGRIC
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E-4 TABLE E.1 India</strong
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APPENDIX F INDIAN AGRICULTURAL PROD
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TABLE F.1 India: A
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FIGURE F.1 India:
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is in nonirrigated areas with yield
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Consumption India
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efrigeration. This characteristic i
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70 percent of tota
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eportedly preferred in southern <st
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Cotton During MY 2003/04-2007/08, <
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Government of <str
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APPENDIX G UNION AND STATE/UNION TE
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certain agricultural goods in the p
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Bibliography Chaulan, Shri U.K. “
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Simulation Framework The effects <s
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Producers determine the optimal sup
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Applied ad valorem tariff equivalen
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We considered the possibility that
Page 281 and 282:
Estimation of <str
Page 283 and 284:
Bibliography Anderson, Kym, Mariann
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