Canada has accused India of “discriminatory treatment” against it in a dispute over $1.1 billion worth of Canadian pulse crop exports.
Canada normally ships much of its peas, lentils and other protein-rich pulse crops to India, where they are a staple of many diets.
However, India announced a 50 percent tariff last month on dry pea imports from all countries, causing prices to fall in Canada, the world’s biggest exporter.
Canadian shipments to India have also been interrupted by India’s requirement that crops be fumigated for insects in the country of origin.
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India normally gives Canada an exemption from the policy be-cause the country’s cold climate does not allow certain pests to survive.
Canada and other exporters received an exemption from fumigation until Dec. 31, but then a separate exemption on inspection fees was cancelled Sept. 31 for Canada but extended to Dec. 31 for other countries.
“Progress has stalled and a solution to this important issue remains elusive,” said a joint statement from Agriculture Minister Lawrence MacAulay and International Trade Minister Francois-Philippe Champagne, adding that Canada is “deeply concerned and disappointed” with India’s regulatory and tariff decisions.
Canada noted the difference in treatment regarding the exemption on inspection fee payments associated with the fumigation issues. This indicates “that India is applying discriminatory treatment to Canada,” the ministers said.
New Delhi is committed to doubling Indian farmers’ incomes and reducing imports, a senior official with India’s Ministry of Commerce and Industry said recently.
After several years of poor monsoons and drought-squeezed crops, India had a good monsoon last year and a bumper crop. It looks to have a similar sized crop this year thanks to a second year of good weather.
