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Source: The post is based on the article “India, US agree to end 6 WTO disputes” published in Business Standard on 24th June 2023
What is the News?
India and the US have agreed to end six trade disputes at the World Trade Organisation.
What are the six concluded WTO disputes between India and US?
The six disputes include three initiated by India and as many by the US.
These include 1) countervailing measures on certain hot-rolled carbon steel flat products from India, 2) certain measures relating to solar cells and modules, 3) measures relating to the renewable energy sector, 4) export-related measures, 5) certain measures on steel and aluminium products and 6) additional duties on some products from the US.
The one pending case is the poultry case where both India and the US remain involved in discussions to find a solution by the end of this year.
Decided to remove tariffs on products: In 2018, the US imposed 25% and 10% import duties on certain steel and aluminium products respectively, on grounds of national security.
In retaliation, India in 2019 imposed customs duties on 28 American products. India had also filed a complaint against the US in WTO for imposing these duties.
Now the US has assured India that at least 70% of all such requests for steel and 80% of all such requests for aluminium applications for products originating in India will be excluded from the additional tariffs. India also agreed to remove retaliatory tariffs which it had imposed.
Agreed to discuss GSP: The US had in 2019 withdrawn India’s preferential tariff benefits under the Generalised System of Preferences (a US trade preference program which provides opportunities to specific countries to grow their trade).
After the current US-Indo meeting, the two countries have also agreed to discuss India’s demand for the restoration of GSP benefits to domestic exporters.
What is the significance of these decisions taken by India and the US?
This development comes at a time when trade between the two countries has reached a record high and the US has emerged as India’s biggest trading partner.
According to the provisional data of the Commerce Ministry, bilateral trade between India and the US was about $128.55 billion in 2022-23. It was $80.51 billion in 2020-21.
