US spice industry seeks permanent tariff exemption for Indian spices

Washington: The American spice industry has urged the United States government to retain and permanently institutionalise tariff exemptions for Indian spices as Washington and New Delhi work towards finalising a trade agreement.

The American Spice Trade Association (ASTA) said many spices imported from India cannot be grown commercially in the US and that imposing tariffs on them would increase costs for American businesses and consumers without protecting any significant domestic industry.

ASTA President Donald Pratt said the association’s key demand was the continuation of tariff exemptions for agricultural products that are not produced in the US or elsewhere in the Western Hemisphere but are widely used by American consumers and businesses.

“For our industry, it is about the continued exemption from tariffs of agriculture that is not grown and cannot be grown in this hemisphere, but is valued by consumers and business partners worldwide,” Pratt told IANS at an event at India House in Washington.

He said the association hoped the exemption would be retained during the next phase of trade negotiations and made a permanent exception to tariff rules.

Pratt said India grows more than half of the 109 spices recognised by the International Organization for Standardization and remains a crucial supplier to the US market. The US imported Indian spices worth around $700 million last year, according to figures cited by him.

“The United States grows only a small fraction of the spices we use. Many spices simply cannot be grown here at scale,” Pratt said.

He said American manufacturers and consumers depended on India for products such as cumin, fennel and chillies, along with dozens of other spices used in everyday food products.

ASTA has been working with the Indian Embassy on tariff-related issues for the past 18 months. Pratt described the discussions as open, practical and collaborative, adding that the association had also led industry efforts to keep spices outside new tariff barriers.

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

As India and the US move towards a trade agreement, the association is seeking further guarantees to ensure that spices remain accessible and affordable in the American market.

Roberto Fanni, chair of ASTA’s science and regulatory committee, said spices had received tariff exemptions because the US was not a major producer of the products.

“There is no significant domestic production that can be promoted by imposing a ban or tariffs on spices,” Fanni told IANS.

He said relations between Indian suppliers and the US market were also improving, with producers increasingly adapting to American food safety and regulatory requirements. Indian suppliers are working to address compliance issues from the farm level, which could help expand trade volumes, he added.

Laura Schumer, executive director of ASTA, described India as the association’s most important trading partner.

“Historically, we have relied heavily on India for the variety, volume and value of spices imported into the United States. India is our most critical trade partner, without question,” Schumer said.

ASTA represents around 100 companies involved in importing, processing, manufacturing and selling spices in the US.

The association’s demand comes amid broader discussions between India and the US on tariffs, market access and a proposed trade agreement. The industry maintains that exempting spices and other unavailable natural resources would help American businesses maintain supplies without affecting comparable domestic agricultural production.

(Inputs from IANS)