Team Blitz India
India and the United States have jointly announced to the World Trade Organization (WTO) the amicable resolution of all lingering trade disputes between the two nations. This declaration marks the conclusion of seven long-standing trade disputes, dating back to 2012.
The significance of this announcement cannot be understated, particularly in strengthening the bilateral trade partnership between the US and India. It further solidifies the agreements established during Prime Minister Narendra Modi’s State Visit to the US in June last year, where over half a dozen disputes were successfully resolved. With the US being India’s largest trading partner, boasting a bilateral goods trade of $119.5 billion in the previous year, this development holds immense importance.
Among the six resolved disputes were India’s appeal against the US’s imposition of tariffs on imports of steel and aluminium products from India; the US appeal against India’s retaliatory tariffs; India’s renewable energy subsidies for solar cells and modules under Jawaharlal Nehru National Solar Mission; India’s appeal over similar subsidies for solar cells and solar modules by eight US state governments; the US appeal against India’s export subsidy programmes; India’s imposition of countervailing duties on imports of certain hot-rolled carbon steel flat products from the US.
The resolution of the remaining dispute concerning poultry and agricultural produce was reached following commitments made by PM Modi and President Biden on the sidelines of the G20 Summit in September last year.
This agreement brings an end to a prolonged dispute over poultry imports from the US, which originated from India’s concerns regarding Avian Influenza. The US objected to India’s stance and lodged a complaint in WTO in 2012. Despite India initially losing the case at the WTO in 2015, negotiations over import duties and shipment mechanisms ensued.
As part of the settlement, India has agreed to reduce import duties to 5-10 per cent on specific fresh and processed food items, aiming to facilitate smoother trade relations in this sector.
The successful resolution of these disputes sets the stage for enhanced collaboration between India and the US across various sectors, fostering greater economic cooperation and facilitating the exchange of goods and services.
