India and US resolve final WTO dispute, strengthen bilateral trade relations

India and the United States released a joint statement on September 9, hours after US Vice President Joe Biden arrived in Delhi to attend the G20 Summit hosted by Prime Minister Narendra Modi. The statement announced the resolution of the seventh and final outstanding World Trade Organization (WTO) dispute between the two countries.

"The leaders hailed the settlement of India and the United States' seventh and final ongoing World Trade Organization (WTO) dispute. This follows the historic resolution of six pending bilateral trade disputes at the World Trade Organization in June 2023.

After a private meeting with US Vice President Joe Biden and US Treasury Secretary Janet Yellen, PM Modi made this public statement.

This modification also solves the lone problem with the poultry case. A long-running dispute between India and the United States over chicken imports was finally resolved in 2015, with India losing. The United States had requested trade sanctions against India for violating the WTO's order, and India had 12 months to comply.

This latest step follows the Indo-US state visit of PM Modi between June 21 and June 23 of this year, during which time six of the total seven disagreements between India and the US were addressed.

There will be no disagreements between India and the United States before the end of the year. Commerce Minister Piyush Goyal said during a press conference on June 26 that "all the six major ones have already been resolved."

Havells 1200mm Ambrose Energy Saving Ceiling Fan

Crompton HIGHSPEED AURA 1200 mm (48 inch) Ceiling Fan

Six trade disputes were settled, three of which involved allegations of unfair treatment based on national origin: "Certain Measures Relating to Solar Cells and Solar Modules," "Export-Related Measures," and "Additional Duties on Certain Products from the United States." US disputes include "Countervailing Measures on Certain Hot-Rolled Carbon Steel Flat Products from India," "Certain Measures Relating to the Renewable Energy Sector," and "Certain Measures on Steel and Aluminium Products."

This comes at a time when bilateral trade is at an all-time high and the United States has surpassed India as India's primary trading partner.

Preliminary figures from India's Ministry of Commerce show that between 2022 and 2023, bilateral trade between India and the United States rose from $119.5 billion to $128.55 billion, up 7.65 percent over the previous year's total of $80.51 billion.

Also read :- Explained: Family pension under EPFO’s Employees’ Pension Scheme (EPS)

The problem with the Generalized Preferences System (GSP) has not been fixed. In 2019, the United States ended India's participation in the GSP, a trade preference program that offered favourable tariff treatment in exchange for increased US exports to certain countries.

Following their June meeting, US and Indian officials said they will meet again to discuss New Delhi's request to restore GSP incentives for domestic exporters. Indian Commerce Minister Piyush Goyal said that his country and the United States would have talks on the matter. The US Congress holds the ultimate authority over whether or not GSP status is reinstated for India.