Letter to Robert Lighthizer, U.S. Trade Representative - Sen. Cruz and Colleagues Urge U.S. Trade Representative Lighthizer to take Action on India's High Tariffs Impacting Texas Pecan Farmers

Letter

Dear Ambassador Lighthizer:

In President Trump's recent joint press statement with Prime Minister Modi in the Rose Garden, the president mentioned the importance of removing the barriers to the export of U.S. products to India. We want to draw your attention to one barrier in particular, India's high agricultural tariffs, and urge you to work with India to reduce these tariffs.

India's rapidly changing economy, growing middle class, and demand for consumer-oriented agricultural products are positive market indicators for U.S. export growth. However, restrictive import tariffs on certain agricultural products are constraining agricultural trade and undermining development of deeper trade relations.

One example is the current disparity in the tariffs India charges on products classified as tree nuts. The current tariff on U.S. pecans entering India is approximately 36%, while the tariff for other similar products, such as pistachios and almonds, is much lower at 10%.

Reducing the tariff on all tree nuts will encourage increased imports of a type of commodity that enjoys popularity in India and will generate greater revenue for the country. For pecans in particular, any increase in imports from the U.S. would not impact domestic pecan production in India because the country currently produces very little, if any, pecans.

Additionally, increasing U.S. pecans imports to India presents an opportunity to advance issues important to rural America. The pecan industry contributes over $3.75 billion to the rural economies of the 15 pecan-producing southern states stretching from the Carolinas to California, and exports alone over the last 10 years added an additional $1.25 billion in economic activity in rural America.

There are fewer nations in the world that hold greater potential for economic cooperation and trade partnership with the United States than India. Our shared democratic values and common commitment to free markets present American businesses with tremendous possibilities in South Asia.

As you and the Administration continue to explore new opportunities to grow the economy through trade and promote American agriculture, it is imperative that a key part of strengthening our trade relationship with India is reducing the tariffs that are impeding U.S. agricultural exports.

Thank you for your attention to this request.