By Jessica Domel
Multimedia Reporter
Twelve U.S. senators, including John Cornyn and Ted Cruz of Texas, are urging the U.S. Trade Representative’s Office to ask officials from India to lower or eliminate the tariffs levied on pecans from the United States.
“Pecan prices have faced negative pressure due to rising imports from Mexico, Chinese tariffs and Hurricane Michael’s impact on tree loss and 2018 crop production,” a letter from the senators said. “Gaining access to new markets for pecans will help stabilize the pecan markets while orchards are replanted and a trade deal is negotiated with China.”
U.S. pecans currently face a 36 percent tariff in India. Pistachios and almonds face only 10 percent in tariffs.
“The growing middle class in India has demonstrated its desire for consumer-oriented agricultural products, like tree nuts, and the Indian market represents one of the most dynamic and fastest growing in the world,” the letter said. “Unfortunately, the current disparity in the tariffs India charges on different varieties of tree nuts has created an unlevel playing field for American producers.”
The senators believe lowering the tariff on U.S. pecans would satisfy the India’s demand for additional varieties of tree nuts without impacting the country’s virtually non-existent pecan industry.
According to U.S. Sen. David Perdue of Georgia, U.S. pecan exports to India would increase to $300 million within five years if the tariff is reduced to 10 percent or less.
In 2018, India was the U.S.’ 13th-largest goods export market and 18th-largest agricultural export market.
About $1.5 billion in U.S. agricultural products were exported to India in 2018. Tree nuts are the largest contributor to that total with sales of $6.62 million in 2018.
The U.S. imported $54.4 billion in goods from India in 2018 including spiders, rice, essential oils, precious metals and stone, pharmaceuticals and machinery.
Trade negotiations between the two countries continue.