GENEVA--India has revealed details of a tariff swap agreement with the United States which will provide exporters with improved access to the Indian market for certain agricultural goods while raising tariffs on others farm products.
Trade officials said a paper outlining the proposed tariff changes was circulated to WTO members May 1. Members will have three months to raise objections to the proposal; if no objections are received, the changes will enter into force.
The agreement is part of a deal between Washington and New Delhi aimed at resolving a dispute between the two countries over import restrictions imposed by India to address its balance of payment difficulties. In September 1999 the WTO adopted a ruling which found that Indian restrictions on some 2,700 product categories, many dating back decades, were no longer justified.
U.S. officials said that the agreement will lead to reductions in import tariffs up to 50 percent on almonds, orange juice, citrus and other fresh fruits worth some $40 million a year in annual exports. In return India will raise tariffs on corn, rice, milk powder and other goods.
The Indian tariff changes affect its bound rates, or tariff rate ceilings, which are legally enforceable through WTO dispute settlement rules.
India said it will reduce bound rates on oranges and lemons/limes from 100 percent to 40 percent while ceiling rates for grapefruits and orange juice will drop from 100 percent to 25 percent and 85 percent to 35 percent respectively.
Tariffs on apples, pears and quinces, plums and prunes will fall between 5 percent and 30 percent. Other products benefiting from bound rate reductions include butter, cheese, almonds, olive oil, sweet biscuits, chewing gum and wool products.
In return India will raise its bound rates on milk powder and corn from zero to 60 percent and on rice from zero to 80 percent. Other products where bound rates will be introduced or raised include grapes, grain sorghum, millet, and rapeseed, colza and mustard oil.
By Daniel Pruzin
Copyright c 2000 by The Bureau of National Affairs, Inc., Washington D.C.:
