India, United States Resolve Six Of Seven WTO Trade Disputes During PM Modi's US Visit

India and the United States have resolved six out of seven trade disputes at the World Trade Organisation (WTO) through mutually agreed solutions during Prime Minister Narendra Modi's state visit to the US, Commerce and Industry Minister Piyush Goyal said.

Goyal said that India and the US have actively engaged in discussions during the last two years to terminate these six outstanding disputes at the WTO.

While interacting with the media on Friday (23 June) in New Delhi, Goyal lauded the "visionary leadership of the leaders of both countries in taking this historic decision, which enhances the trust and partnership between the two countries", the Commerce Ministry said in a release.

These disputes have been filed by India and the US over a decade, representing certain key sectors of the economy such as steel, aluminium, renewable energy, solar products, and certain key export-related measures.

This Mutually Agreed Solution (MAS) negotiated by both sides marks the culmination of protracted negotiations, and it is unprecedented in WTO history, the ministry said.

While the other three disputes, which have been filed by the USA against India are: Certain Measures Relating to Solar Cells and Solar Modules; Export Related Measures, and Additional Duties on Certain Products from the United States.

"As a part of the agreement, the US has agreed to grant market access to steel and aluminium products under the exclusion process of Section 232 of the Trade Expansion Act 1962," the ministry said.

India has agreed to remove the additional duty, i.e., retaliatory tariffs on certain products. However, the prevailing basic import duty on these products applicable to all imports will continue, it added.

This market access will restore opportunities for Indian steel and aluminium exporters, which were restricted since 14 June 2018 because of the US measure under which additional duties of 25 per cent and 10 per cent were levied on steel and aluminium products respectively, the ministry said.

"As part of the market access, going forward, the US Department of Commerce will clear 70 per cent of steel and 80 per cent of aluminium applications for products originating in India," it said.