NEW DELHI: Hotel owners in India’s southern state of Tamil Nadu have announced a statewide boycott of American beverage products across their properties, following the US move to impose steep tariffs on Indian exports.
Last month, as a part of his escalating global trade war, US President Donald Trump hiked the total duty on Indian exports to 50 percent — the highest in Asia and one of the greatest ever imposed on a major trading partner by any American administration.
As India braces for the tariff’s impact, which is expected to reduce its gross domestic product growth by up to 1 percentage point, the Tamil Nadu Hotel Owners Association wants to encourage its members — who own 100,000 hotel restaurants across the state — to stop contributing to the US economy.
Venkada Subbu, the association’s president, who announced the boycott campaign on Wednesday, told Arab News the hotels are preparing to enforce it in the next two weeks.
“This is the first step. We will implement it here. Then we are going to take it to all-India levels,” Subbu said.
“American beverages are manufactured in India. They are using our water. They are all using our packaging products. They are selling it to us, and they are taking the profit for their country. That’s why we are against it.”
India has dozens of home-grown cola, soda, and bottled water brands, and does not have to depend on American soft drink giants such as PepsiCo or Coca-Cola.
“This is easily manufactured in India. Even better products available here, even healthier products are available here ... There are so many competitors with equally good quality products available in India. We want to encourage them,” Subbu said.
“Many companies are available, even the leading brands like Tata and Reliance are also doing it. So, there is no problem. It won’t affect our industry in any way.”
It is not the first time that the private sector in Tamil Nadu — a state of 70 million people, which is also one of the country’s most prosperous — announces a boycott of US beverage companies.
Coca-Cola and PepsiCo were restricted from using the Thamirabarani River as their water supply in November 2016, when a local consumer protection association argued they deprived farmers of vital irrigation and drinking water.
The restriction imposed by the Madras High Court’s interim order was lifted in March 2017.
Soon afterward, the main trade unions in Tamil Nadu targeted Pepsi and Coca-Cola with a boycott campaign, in which most of the associated traders stopped restocking their beverages, but it was short-lived and fizzled out within a few weeks.