The Government of Canada said it is deeply concerned and disappointed with recent regulatory and tariff decisions made by the Government of India affecting Canadian pulse trade.
Since 2004, India has granted Canada a series of exemptions to an import regulation regarding mandatory methyl bromide fumigation for pulses. The most recent derogation, granted in July, expired on September 30, 2017 and, for the first time since 2004, a renewal of the extension has not been granted by the Government of India to Canada.
In a news release the Canadian Government notes that India’s other trade partners have received extended derogations to December 31, 2017, indicating that India is applying discriminatory treatment to Canada.
Adding to this, India announced on November 8, 2017 a 50% tariff on dry pea imports from all countries, a decision that was made without advance notice.
The Government of Canada says it stands ready to work constructively with the Government of India, in close consultation with the Canadian pulse industry, to resolve this issue and obtain a commercially viable solution.
Canada and many other countries are trying to phase out methyl bromide because of concerns it depletes the ozone layer. Additionally, it doesn’t work well in the cold weather prevailing at the time exports to India are readied.