US Spice Industry Seeks Permanent Tariff Exemptions for Indian Imports

Washington — The U.S. spice industry is urging Washington to preserve tariff exemptions for Indian spices and make those protections permanent as the United States and India work toward a broader trade agreement.

Donald Pratt, president of the American Spice Trade Association, said the industry’s priority is to maintain exemptions for agricultural products that are not commercially available from domestic producers but are widely used by American consumers and businesses.

“Well, for our industry, it’s about the continued exemption, you know, from tariffs, of agriculture that’s not grown in this hemisphere and cannot be grown in this hemisphere, but that is beloved by our consumers, you know, and our business partners, worldwide,” Pratt said at an event at India House in Washington.

Pratt said the Indian Embassy and other parties involved in the trade discussions have advocated extensively on the issue.

“But also I think as they go to wrap up the next phase of that, we hope that that continues the exemption now that we’re seeing and becomes hopefully permanently, you know, enshrined, you know, as an exception to tariffs,” he said.

Pratt said India grows more than half of the 109 spices recognized by the International Organization for Standardization and remains a critical supplier to the U.S. market.

The United States imported about $700 million worth of Indian spices last year, according to figures cited by Pratt.

“Here’s the reality for our industry. The United States grows only a small fraction of the spices we use. Many spices simply can’t be grown here at scale,” he said.

Pratt said the industry has worked to explain to U.S. policymakers why spices should be treated differently from agricultural products that compete directly with domestic production.

He said many spices depend on specific climates and growing conditions that cannot easily be replicated in the United States.

“So we rely on India for cumin, fennel, chilies, and dozens more spices,” Pratt said. “They season the food Americans enjoy every day.”

Pratt said the association has worked closely with the Indian Embassy on tariff issues over the past 18 months and described the discussions as open, practical and collaborative.

ASTA also mounted its own advocacy campaign aimed at keeping spices outside new tariff barriers.

“Asta led the industry advocacy for spices to be exempt from new, tariffs,” Pratt said.

“Our advocacy paid off last year with most spices included on exemption lists for Section 122 as well as 301 tariffs as unavailable natural resources,” he added.

Pratt said the industry hopes a final U.S.-India trade agreement will provide further protections that keep imported spices available and affordable.

The association argues that imposing tariffs on spices unavailable from U.S. producers would increase costs for businesses and consumers without providing meaningful protection to domestic agriculture.

Roberto Fanni, chairman of ASTA’s science and regulatory committee, said exemptions were justified because the United States is not a major producer of many spices.

“However, spices are exempt because it’s recognized that US is not a producer of spices, so there is no any national production that can be, I would say pushed if there is a ban or there are tariffs for spices,” Fanni said.

Fanni said trade ties between Indian suppliers and the U.S. market are also strengthening as Indian producers become more familiar with American food safety and regulatory requirements.

“The spice trace is definitely strategic. It’s growing and it’s really amazing to see how the relationship between the two countries are getting better,” he said.

He added that Indian suppliers are increasingly addressing compliance and food safety requirements at the farm level, helping make products more readily acceptable in the U.S. market.

Laura Schumer, executive director of the American Spice Trade Association, said India holds a central role in the U.S. spice supply chain.

“India is absolutely our most critical trade partner,” Schumer said.

“Historically, we’ve relied so heavily on India, both for the breadth of spices, the volume of spices, and the value of spices that we import into the United States. India is our most critical trade partner, bar none.”

Schumer said ASTA represents about 100 companies involved in importing, processing, manufacturing and selling spices in the United States.

The association’s position is that spices unavailable from domestic producers should continue to receive tariff exemptions because those imports supply U.S. businesses without displacing comparable American agricultural production. (Source: IANS)