No Benefit for Canada from India Tariff Suspension

Canadian exporters will see no benefit from India’s recent decision to temporarily drop import tariffs on certain pulses.

According to Mac Ross, director of market access and trade policy for Pulse Canada, the suspension of tariffs until Oct. 31 only applies to pigeon peas, mung beans and urad/black gram lentils – none of which Canada either producers or exports to other nations. On the other hand, India’s import tariffs remain in place for crops like lentils, of which Canada is a major exporter.

“What we are looking for are pulse changes to allow for fewer restrictions on the pulses we care about,” Ross said. “A tariff reduction would be good news for Canada.”

India’s imports tariffs have been a major stumbling block for Canada and other large pulse exporters, simply because there has been virtually no stability or predictability. For example, the Indian government suddenly drops or increases tariff amounts with little or no warning, making it almost impossible – or at least extremely risky - for exporters to do business.

Ross attributed the Indian government latest tariff suspension to efforts to combat inflation and bring stability to domestic food prices.

“We want to be a convenient supplier to them and help them meet their food security goals, but there’s no predictable policy. We don’t have an idea of what’s going to happen ahead of seeding.”