Letter to the Honorable Sonny Perdue, Secretary of Agriculture, and the Honorable Robert Lighthizer, US Trade Representative - India's Unfair Trade Practices Affecting American Dry Pea Producers

Letter

Dear Secretary Perdue and Ambassador Lighthizer:

We write to request your assistance in addressing a serious market disruption that is affecting U.S. dry pea producers and processors in the Pacific Northwest and Northern Plains. On November 8, 2017, the Government of India announced that all imports of dry peas will be subject to a 50 percent tariff, effective immediately, including shipments under contract and in transit. India is the top export market for U.S. dry peas, purchasing an average of 200,000 tons, or 30 percent of U.S. exports, per year. Unless this decision is reversed or mitigated, it will have a devastating impact on the U.S. dry pea industry.

The imposition of such an increase without notice has caused cash dry pea prices to collapse in the United States. Furthermore, exporters with shipments currently en route will suffer severe financial hardship when the tariff is applied to their product upon arrival. To mitigate these initial impacts, we urge that you request the Government of India to immediately reverse its decision, or at least delay imposing it for 90 days to allow shipments under existing contracts to be delivered.

In the event India continues to impose this highly-disruptive trade measure, we ask the U.S. Department of Agriculture to use discretionary authorities, as appropriate, to purchase dry peas that otherwise would have been exported to India during the current marketing year. These authorities include 7 U.S.C. 612c (Section 32) to purchase surplus commodities that would otherwise depress domestic prices, and sales or donations under domestic or international food assistance programs.

We look forward to working with you to mitigate the impact of this unanticipated and devastating action by the Government of India on U.S. dry pea producers and processors.