10 months ago
US Spice Body Seeks Tariff Relief Amid India Trade Talks
Imagine the US put a big tax on black pepper coming from India.
The American Spice Trade Association (ASTA), which helps spice companies, says this tax is making it really hard for them to do business.
It's like trying to buy toys when the price keeps changing wildly!
They are hoping that when the US and India talk about a new trade agreement, they can convince the US to lower this tax.
They want the tax to be much smaller, or even gone completely for things like black pepper that the US doesn't grow a lot of.
This is because the high tax makes it difficult to plan and buy spices ahead of time.
Other countries sometimes get special lower taxes on these kinds of goods, and ASTA hopes the US and India can agree on something similar.
They believe lower taxes will help the spice industry and many other businesses that use spices.
The American Spice Trade Association (ASTA) is seeking reduced tariffs on imports from India as US-India trade talks progress.
ASTA cites high tariffs, particularly a 50% rate on black pepper, as detrimental to US spice industry exports and operations.
The association claims that fluctuating tariffs have made it difficult for businesses to manage long-term supply agreements.
ASTA is advocating for tariff rates to be reduced to around 20%, with a goal of achieving zero tariffs on spices not produced in the US, like black pepper.
US imports of black pepper from global sources amount to an estimated $500 million annually, with Indian exports contributing about $40 million.
- Who
- The American Spice Trade Association (ASTA)
- What
- Seeking tariff relief from the US government on black pepper imports from India amidst ongoing US-India trade talks.
- Where
- The US market, with implications for exports from India.
- When
- Following recent announcements of tariff changes and in anticipation of a new trade deal.
- Why
- To alleviate the negative impact of high tariffs on the US spice industry and other sectors that rely on imports, and to stabilize business operations impacted by price fluctuations.
American Spice Trade Association (ASTA)
US Government Tariffs
Impact of Tariffs
American Spice Trade Association (ASTA)
ASTA argues that high tariffs, specifically the 50% on black pepper, are choking exports from India and making it difficult for the US spice sector, along with other industries like food, culinary, pharmaceuticals, alcohol, and auto parts, to navigate due to price fluctuations and the inability to plan long-term deals.
US Government Tariffs
The US government has imposed tariffs as part of its trade policy, impacting various import categories. The specific rationale for the 50% tariff on black pepper is not detailed in the provided text, but it is presented as an existing policy.
Desired Tariff Rates
American Spice Trade Association (ASTA)
ASTA hopes for a reduction in tariffs, ideally from 50% to around 20%, and seeks exemptions for agricultural commodities and spices that cannot be produced in the US, such as black pepper, aiming for zero tariffs on these items.
US Government Tariffs
The current tariff rate stands at 50% on black pepper, with no indication of immediate reduction or exemption from the US government in the provided text.
Trade Deal Negotiations
American Spice Trade Association (ASTA)
ASTA views the ongoing trade deal negotiations between India and the US as a crucial opportunity to secure tariff relief and exemptions, citing precedents with other countries like Malaysia and Cambodia, and the EU and US's existing exemptions for saffron and paprika.
US Government Tariffs
US-India trade talks are gaining momentum, creating a potential pathway for trade policy adjustments, but the outcome regarding spice tariffs remains uncertain.
Key facts
- Organization Seeking Relief
- American Spice Trade Association (ASTA)
- Primary Concern
- High US tariffs on black pepper imports from India
- Current Black Pepper Tariff Rate
- 50%
- Desired Black Pepper Tariff Rate
- 20% or zero
- US Black Pepper Imports (Annual)
- 70,000-85,000 tonnes, valued at $500 million
- Indian Black Pepper Exports to US (Annual)
- Approx. $40 million
- India's Share of Global Black Pepper Production
- 15%
Quotes
Laura Shurmnow
Executive Director, ASTA (speaking on the sidelines of the International Pepper Community meeting in Kochi)
“If India and the US are able to secure a deal, not only will the overall rate come down, but there will also be exemptions where some commodities have zero tariffs”
thehindubusinessline.com
“The entire industry in the US such as food, culinary, pharmaceuticals, alcohol and even auto parts are definitely suffering because of these tariffs”
thehindubusinessline.com