The planned American duties could cover a wide range of products and would generate $450m a year in revenue for the US government.
A diplomatic row has broken out over the issue at the World Trade Organization (WTO), with India saying it was “deeply disappointed”, although both sides will talk to seek a resolution. The US said it would examine whether the new Indian poultry trading system actually complies with WTO rules.
A WTO disputes panel ruled last June that India should liberalise its bans on imports of US poultry products, which had been imposed over bird flu concerns. India had until 19 June 2016 to dismantle these poultry trading restrictions. But resulting Indian reforms admitting products from bird flu-free zones, only came into force on 7 July.
A note from the US government to the WTO said that in June, “the Indian government was not even claiming that the measures…had been modified.”
In its own statement, India said going forward, “imports of poultry and poultry products shall be allowed from zones free from the avian influenza virus in accordance with international standards.”