Indian Economy News

Union Commerce and Industry Minister Mr. Piyush Goyal highlights resolution of six outstanding WTO disputes between US and India through mutually agreed solutions

Union Minister of Commerce and Industry, Consumer Affairs, Food & Public Distribution and Textiles, Mr. Piyush Goyal has highlighted the resolution of six outstanding World Trade Organisation (WTO) disputes between the United States and India through mutually agreed solutions, as jointly communicated by Prime Minister of India, Mr. Narendra Modi, and President of the United States of America, H.E. Mr. Joseph Biden, during the Prime Minister's official state visit to the United States.

While speaking with the media in New Delhi, the Minister applauded the visionary leadership of both countries' leaders for making this historic decision, which strengthens confidence and partnership between the two countries.

The six trade disputes that will be resolved are-India has filed three of them against the United States:

• Countervailing Measures on Certain Hot-Rolled Carbon Steel Flat Products from India (DS436)
• Certain Measures Relating to the Renewable Energy Sector (DS510)
• Certain Measures on Steel and Aluminium Products (DS547)
• Certain Measures Relating to Solar Cells and Solar Modules (DS456)
• Export Related Measures (DS541)
• Additional Duties on Certain Products from the United States (DS585)

On the other hand, the other three issues have been filed by the USA against India.

According to Mr. Goyal, conversations between India and the US to resolve these six unresolved WTO cases have been ongoing for the past two years.

Over a decade, India and the United States have filed these disputes, which represent certain critical sectors of the economy such as steel, aluminium, renewable energy, solar products, and certain significant export-related policies.

This Mutually Agreed Solution (MAS) negotiated by both parties is unparalleled in WTO history. As part of the deal, the United States committed to extending market access to steel and aluminium products through the exclusion process outlined in Section 232 of the Trade Expansion Act of 1962. India announced its intention to eliminate the additional duty, i.e., retaliatory tariffs on specific products. However, the current basic import charge on these products, which applies to all imports, will remain in effect.

This market access would restore prospects for Indian steel and aluminium exporters, which have been limited since the 14th of June 2018 due to the US 232 measure, which imposed additional taxes of 25% and 10% on steel and aluminium products, respectively. 

As part of the market access, the US Department of Commerce will clear 70% of steel and 80% of aluminium applications for products originating in India in the future. These applications will be submitted by importers on behalf of exporters under the US Sec. 232 exclusion process. It would give substantial impetus to increase India's steel and aluminium exports by approximately 35%. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.