The United States and India announced yesterday an agreement to terminate six outstanding World Trade Organization disputes – three launched by Washington and three by New Delhi – over issues ranging from steel and aluminum to solar cells.
The decision to end the WTO disputes came in the midst of Indian Prime Minister Modi’s state visit to Washington.
India also agreed to remove retaliatory tariffs it had imposed in response to the Section 232 national security measures on steel and aluminum, on certain US products, including chickpeas, lentils, almonds, walnuts, apples, boric acid and diagnostic reagents.
At a joint press conference with President Biden, the Prime Minister said that the decision to end “long-pending trade-related” disputes will allow the two countries to “make a new beginning” in their bilateral trade relationship.
“A trade and investment partnership between India and America is important not only for our two countries, but for the global economy as well,” Prime Minister Modi told reporters.
The Administration is looking for closer economic ties with India as an alternative to China.
Among a host of issues, the two leaders announced partnerships on semiconductor supply chains and critical minerals.
The agreements on trade issues are the culmination of two-years of intense engagement,
including through the US-India Trade Policy Forum, according to US Trade Representative Katherine Tai. “As a result of our work, US agricultural producers and manufacturers will now enjoy renewed access to a critical global market and we will strengthen our trade relationship with one of our closest partners.
The six WTO disputes are:
India – Certain Measures Relating to Solar Cells and Solar Modules (DS456);
United States – Certain Measures Relating to the Renewable Energy Sector (DS510);
India – Export Related Measures (DS541);
United States – Certain Measures on Steel and Aluminium Products (DS547); and
India – Additional Duties on Certain Products from the United States (DS585).
Separately, Sens. Mark Warner (D-Va) and John Cornyn (R-Texas), co-chairs of the Senate India Caucus, introduced legislation yesterday that would streamline consideration of defensive military sales to India under the US Arms Export Control Act.
The legislation would add India to the list of countries that receive an expedited 15-day period for Congress to be notified prior to the finalization of foreign military sales under the Act. Currently, there is a 30-day period for India.
The two senators have introduced a version of the legislation as an amendment to the annual National Defense Authorization Act every year since 2019.
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