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Canada Concerned By Indian Pulse Tariffs

by Mike Godfrey, Tax-News.com, Washington

06 December 2017


The Canadian Government has said that it is "concerned and disappointed" by recent tariff decisions made by the Indian Government regarding imports of certain pulses.

In November, India imposed a 50 percent tax on dry pea imports from all countries. The most recent Indian derogation for the fumigation of pulses expired in September and a renewal of the extension has not been granted to Canada.

In a statement, Canada's Minister for Agriculture and Agri-Food, Lawrence MacAulay, and its Minister of International Trade, Francois-Philippe Champagne, said that the Canadian Government was "deeply concerned and disappointed with the recent regulatory and tariff decisions made by the Government of India affecting the Canadian pulse trade."

They said that the tariff announcement was made without advance notice, and argued that the extended derogations offered by India to other trading parties indicates that "India is applying discriminatory treatment to Canada."

The ministers explained that the Government has been attempting to work with the Indian Government "to provide stable, sustainable access for Canadian pulse exports to India." The statement added that the ministers have been engaged with their Indian counterparts directly.

However, the ministers said that "progress has stalled and a solution to this important issue remains elusive."

The ministers stressed that the Canadian Government "stands ready to work constructively with the Government of India, in close consultation with the Canadian pulse industry, to resolve this issue and obtain a commercially viable solution, helping to ensure India's long-term food security."

India accounted for 27.5 percent of Canada's global pulse exports in 2016.

TAGS: tax | India | food | Canada | import duty | trade

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