India’s dairy import certificate disadvantageous for US exporters

The US has alleged that India’s new dairy import certificate requirements put dairy products from the country at an unfair disadvantage compared to domestically produced items and called for a further delay in its implementation so that both sides could explore ways to resolve differences.

“The United States values its trade relationship with India and looks forward to more discussion regarding the dairy import certificate requirements with the goal of preventing unnecessary trade disruptions,” the US stated in a submission made last week to the WTO Committee on Sanitary and Phytosanitary measures.

US dairy exports to India consisted mostly of milk albumin (such as concentrates of two or more whey proteins) and lactose, which are India’s top imported dairy products from the world, and the US has a relatively small market share behind New Zealand and the EU.

Integrated VHC

On March 31, 2023, the Department of Animal Husbandry and Dairying (DAHD), published its integrated veterinary health certificate (VHC) for the import of milk and milk products into India. The integrated VHC needs to be certified by the exporting country’s authority for consignments being exported to India. Among other requirements, the certificate needs to confirm that all processes have been followed to ensure the products adhere to specified microbiological requirements and does not contain drugs, antibiotics, pesticides, or heavy metal residues.

In its latest submission highlighting its concerns, the US said that the new certification requirement unfairly disadvantaged its exporters. “For example, the requirement that foreign government certificates use the language “never been fed” is different than what Indian regulations require for domestic production,” the US submission pointed out.

Never been fed

The term “never been fed” relates to feeding of mammalian by-products to cattle which India has prohibited. One of the general conditions in the veterinary certification requirement for imported dairy and dairy products is vouching for the fact that “the source animals have never been fed with feeds produced from meat or bone meal including internal organs, blood meal and tissues of ruminant origin and porcine origin materials except milk and milk products.”

The US further stated that India needed to remember that its SPS measures should be science- and risk-based, and should be implemented in a way that is consistent with its WTO national treatment commitments.

The US is not a big supplier of milk and milk products to India, exporting dairy items worth $39 million in FY 2023 to the country, the US Department of Agriculture identified dairy products as one of the consumer-oriented products with high potential for US exporters, in addition to tree nuts, fresh fruit, and processed food and beverages.

“...Policy restrictions (in India) limit the amount and type of dairy products eligible for import. Despite this, India imported a substantial amount from the world in FY2023, valued at $363 million,” noted a USDA report on `opportunities for US agricultural products in India’ published earlier this year.

Last December

The new health certificate requirement for imports was to be implemented last year in December, but in January 2024 it was decided to give six more months for implementation following requests from the US Trade Representative’s office and some importers. The timeline was further extended till October 30 2024.

“We continue to pursue bilateral discussions in which we can resolve the issues that remain with India’s dairy certificate. In the meantime, we believe it would be appropriate for India to grant,” the US submission added.