Posted on 27 Jun 2023
India and the United States have agreed to terminate six outstanding disputes at the World Trade Organisation (WTO) through mutually agreed solutions, Indian Prime Minister Narendra Modi and US President Joseph Biden jointly informed.
This decision was made during the recent official state visit of Modi to the US, Kallanish notes.
Among the six disputes, three were filed by India against the US, namely, countervailing measures on certain hot-rolled carbon steel flat products from India (DS436), certain measures relating to the renewable energy sector (DS510); and steel and aluminium products (DS547).
Meanwhile, the disputes filed by the US were certain measures relating to solar cells and solar modules (DS456), export-related measures (DS541), and additional duties on certain products from the US (DS585).
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 of 1962. 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.
According to the Indian commerce ministry, going forward, the US Department of Commerce will clear 70% of steel and 80% of aluminium applications for products originating in India. These applications will be made under the exclusion process of Sec. 232 by the importers on behalf of the exporters.
This could provide significant impetus to raise India's steel and aluminium exports by about 35%, the ministry adds.
"India and the US have actively engaged in discussions during the last two years to terminate these six outstanding disputes at the WTO," says Indian Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution, and Textiles, Shri Piyush Goyal.
"These disputes have been filed by India and the US for over a decade, representing certain key sectors of the economy such as steel, aluminium, renewable energy, solar products, and certain key export-related measures," Goyal adds.
"This Mutually Agreed Solution (MAS) negotiated by both sides marks the culmination of protracted negotiations and is unprecedented in WTO history," the union minister concludes.
This market access will restore opportunities for Indian steel and aluminium exporters, which have been restricted since 14 June 2018.
Source:Kallanish
