India, US mutually resolve all six trade disputes at WTO


India and the US have mutually resolved all six trade disputes pending at the World Trade Organisation (WTO), in line with the commitment made by the two countries during the US visit of Prime Minister Narendra Modi last month, an official said. The official said that both countries have informed the WTO’s dispute settlement body (DSB) about the resolution of all the pending disputes.
The WTO has already issued a communication with regard to one of the disputes related to the imposition of additional customs duties by India on 28 US products. The official added that the remaining five communications would also be issued by the WTO. The two countries have urged the dispute panel that its report be confined to a brief description of the case and information that a solution has been reached by the two. The trade dispute that was resolved pertains to a complaint filed by the US in 2019 against India.
India had imposed additional customs duties on 28 US products, including chickpeas, lentils, and apples, in retaliation to the US increasing duties on certain steel and aluminium products. Against this resolution, India would remove additional duties on eight US products, including chickpeas, lentils, and apples, which were imposed in 2019 in response to America’s measure to increase tariffs on certain steel and aluminium products, government sources said. During the recent state visit of Prime Minister Narendra Modi to the US, both countries agreed to the termination of six WTO (World Trade Organisation) disputes and the removal of these retaliatory tariffs on certain US products. In 2018, the US imposed an import duty of 25 percent on steel products and 10 percent on certain aluminium products on grounds of national security. In retaliation, India imposed customs duties on 28 American products in June 2019.
The US is India’s largest trading partner. In 2022–23, the bilateral goods trade increased to USD 128.8 billion as against USD 119.5 billion in 2021–22. The six disputes include three initiated by India and as many by the US.
These included a complaint by India against the US with regard to the imposition of countervailing duties on certain hot-rolled carbon steel flat products from India. On September 9, 2016, India filed a case against the US pertaining to domestic content requirements and subsidies instituted by the governments of the states of Washington, California, Montana, Massachusetts, Connecticut, Michigan, Delaware, and Minnesota in the energy sector.
Another dispute filed by the US against India was related to domestic content requirements under the Jawaharlal Nehru National Solar Mission for solar cells and solar modules. In 2018, the US filed a case against India’s alleged export subsidy measures. Similarly, on July 3, 2019, the US filed a dispute against New Delhi on the imposition of additional duties with respect to certain products originating in the US.