The United States has raised concerns with India’s newly introduced dairy import certificate requirements, arguing that the measures place American dairy products at an unfair disadvantage compared to domestically produced goods.
The U.S. has called for another delay in the implementation of these rules, seeking more time for both nations to address their differences.
In a submission to the World Trade Organisation’s Committee on Sanitary and Phytosanitary (SPS) Measures last week, the U.S. emphasised the importance of its trade relationship with India and stressed the need for further dialogue to prevent disruptions.
The U.S. statement pointed out that the new certification procedures could harm its dairy exports, which primarily consist of milk albumin and lactose, two of India’s top imported dairy products.
Despite this, the U.S. has a relatively small market share, trailing behind New Zealand and the European Union in terms of dairy exports to India.
The issue stems from India’s Department of Animal Husbandry and Dairying (DAHD) publishing a new integrated veterinary health certificate (VHC) on March 31, 2023, which imposes stringent requirements on the certification of dairy products entering the country.
The certificate mandates that the products meet specific microbiological standards and confirms that they are free from drugs, antibiotics, pesticides, and heavy metal residues.
Notably, one of the certificate’s stipulations uses the phrase “never been fed” to indicate that cattle have not been fed mammalian by-products, a practice banned in India. The U.S. argued that this language requirement differs from domestic regulations and disadvantages foreign exporters.
The U.S. has called on India to ensure that its SPS measures are science-based and consistent with WTO commitments, including national treatment obligations.
Despite the relatively small volume of U.S. dairy exports to India—worth USD 39 million in FY 2023—the U.S. sees the Indian market as having substantial potential, with dairy imports to India totalling USD 363 million in FY 2023.
Originally set for December 2023, the implementation of the new certification rules has been delayed several times, with the latest extension pushing the deadline to October 30, 2024. The U.S. has urged India to further delay the rule’s implementation while bilateral discussions continue.