India and the US are in advanced talks for an out-of-court settlement to resolve seven trade disputes at the World Trade Organization (WTO), with progress expected soon, a person familiar with the development said.
India and the US are in advanced talks for an out-of-court settlement to resolve seven trade disputes at the World Trade Organization (WTO), with progress expected soon, a person familiar with the development said.
This development coincides with Prime Minister Narendra Modi’s crucial three-day state visit to the US beginning June 21, during which various strategic issues are expected to be discussed.
This development coincides with Prime Minister Narendra Modi’s crucial three-day state visit to the US beginning June 21, during which various strategic issues are expected to be discussed.
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“There are seven disputes between India and the United States in the WTO. Talks for an out-of-court settlement are at an advanced stage. So, after reaching an agreement, we could approach the dispute resolution panel and mutually agree to recover the cases. For example, the United States may agree to drop three cases against India and India would do the same,” the person said on condition of anonymity.
The deal talks loom large as they also include the dispute over a high 25% tariff on Indian steel and a 10% tariff on aluminum exports imposed by former US President Donald Trump in 2018, which sparked trade tensions between the two countries.
Another dispute between the two nations was over India’s export subsidy programs such as the Merchandise Export Scheme of India (MEIS), the Export Oriented Units Scheme and sector specific schemes including the Scheme of the Electronic Hardware Technological Park, Special Economic Zones and Export Promotion Capital. Property Regime.
The US, in its complaint, alleged that these “apparent export subsidies” offer financial benefits to Indian exporters, allowing them to sell products cheaply to the detriment of US workers and manufacturers, in violation of WTO rules. that prohibit subsidies that distort world trade.
An out-of-court settlement is being discussed as the WTO’s supreme court, the Dispute Settlement Body, remains dysfunctional because the US is blocking the appointment of judges. According to the WTO, the United States has systemic concerns about the appeals court.
“The United States said it believes that WTO members must undertake fundamental reform if the dispute resolution system is to remain viable and credible. The United States said the dispute settlement system can and should better support the WTO’s negotiating and oversight functions, adding that it looks forward to further discussions with members on these important issues,” a summary of the issue reads on the WTO website.
US-India ties are on the rise amid a changing geopolitical landscape. Both nations share growing concern over China’s expanding military prowess and aggressive behavior in the Indo-Pacific region. Beyond security concerns and shared democratic values, the two countries are also actively diversifying their economic relationship to reduce reliance on China and mitigate supply chain risks.
Both countries are also committing through the Indo-Pacific Economic Framework for Prosperity (IPEF) to build supply chain resilience between trusted partners.
The Mint has reported that the US would help India develop standards for goods and services and train workers in sectors of strategic interest, such as semiconductor manufacturing.
Prime Minister Narendra Modi’s visit to the US will begin on June 21 in New York, where he will headline International Yoga Day celebrations at the UN headquarters, according to the Foreign Ministry.
Inquiries sent to the Ministry of Commerce, the Ministry of Foreign Affairs, the Prime Minister’s Office and the US Embassy in India went unanswered.
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