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In a significant breakthrough, the United States and India have successfully resolved six long-standing World Trade Organization (WTO) disputes, signaling a strengthening of trade relations between the two nations. The announcement was made during Indian Prime Minister Narendra Modi's State Visit to the United States, marking a milestone in bilateral engagement.
The disputes, which encompassed a range of trade-related issues, included measures on solar cells, solar modules, steel, and aluminum, export-related measures, and countervailing measures on hot-rolled carbon steel flat products. Three disputes were initiated by the United States, and the other three were initiated by India.
As part of the agreement, India has committed to removing retaliatory tariffs on specific U.S. products, such as chickpeas, lentils, and almonds. These tariffs were implemented by India in response to U.S. measures on steel and aluminum. Removing these tariffs is expected to expand market opportunities for U.S. agricultural producers and manufacturers.
The resolution of these disputes reflects the culmination of extensive bilateral engagement between the two countries over the past two years. U.S. Trade Representative (USTR) Katherine Tai emphasized the significance of the agreement, which not only addresses the disputes but also lays the groundwork for future collaboration.
Successfully resolving these disputes is expected to foster a more favorable environment for trade and investment between the United States and India. It sets the stage for deeper cooperation on key areas such as fighter jet engines, semiconductor investment, and space exploration, which were also part of the discussions during Prime Minister Modi's visit.
The termination of these disputes underscores the commitment of both countries to uphold the rules-based international trading system and seek mutually beneficial outcomes. It represents a positive step forward in the bilateral relationship, paving the way for enhanced economic cooperation and opening up new avenues for trade growth and market access.
The six disputes that will be terminated are as follows:
United States – Countervailing Measures on Certain Hot-Rolled Carbon Steel Flat Products from India (DS436): This dispute involves countervailing measures imposed by the United States on certain hot-rolled carbon steel flat products from India.
India – Certain Measures Relating to Solar Cells and Solar Modules (DS456): This dispute concerns certain measures implemented by India regarding the importation of solar cells and solar modules.
United States – Certain Measures Relating to the Renewable Energy Sector (DS510): This dispute revolves around certain measures implemented by the United States in the renewable energy sector.
India – Export-Related Measures (DS541): This dispute involves export-related measures implemented by India
United States – Certain Measures on Steel and Aluminum Products (DS547): This dispute involves certain measures imposed by the United States on steel and aluminum products, which were challenged by other WTO members, including India.
India – Additional Duties on Certain Products from the United States (DS585): This dispute pertains to additional duties imposed by India on certain products originating from the United States.