India, US mutually resolve major WTO issues, including disputes on steel and aluminium
01 Jul 2023
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The United States has agreed to clear 70 per cent of steel and 80 per cent of aluminum applications for products originating in India for market access as the two countries resolved six outstanding trade disputes outside the World Trade Organisation (WTO) framework, union minister of commerce and industry, consumer affairs, food and public distribution and textiles, Piyush Goyal, said in New Delhi on Friday.
The six outstanding WTO disputes between US and India were resolved through mutually agreed solutions as jointly communicated by the Prime Minister Narendra Modi and US President Joseph Biden during the official state visit of the prime minister to the US, Goel said while interacting with the media in the national capital.
The minister lauded the visionary leadership of the leaders of both countries in taking this historic decision, which enhances the trust and partnership between the two countries.
The six trade disputes that will be terminated include three filed by India, namely, Certain Measures Relating to Solar Cells and Solar Modules (DS456); Export Related Measures (DS541) and Additional Duties on Certain Products from the United States (DS585). The other three disputes that have been filed by the US are Countervailing Measures on Certain Hot-Rolled Carbon Steel Flat Products from India (DS436); Certain Measures Relating to the Renewable Energy Sector (DS510); and Certain Measures on Steel and Aluminium Products (DS547).
Goyal said that India and the US have been actively engaged in discussions to terminate these six outstanding disputes at the WTO during the last two years. These disputes have been filed by India and the US over a decade, representing certain key sectors of the economy such as steel, aluminium, renewable energy, solar products, and certain key export-related measures. This Mutually Agreed Solution (MAS) negotiated by both sides marks the culmination of protracted negotiations, and it is unprecedented in WTO history.
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 1962. India has agreed to remove the additional duty, ie, retaliatory tariffs on certain products. However, the prevailing basic import duty on these products applicable to all imports will continue.
This market access will restore opportunities for Indian steel and aluminium exporters, which were restricted since 14 June 2018 because of the US 232 measure under which additional duties of 25 per cent and 10 per cent were levied on steel and aluminium products, respectively.
As part of the market access, going forward, the US Department of Commerce will clear 70 per cent of steel and 80 per cent 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. It would provide significant impetus to raise India's steel and aluminium exports by about 35 per cent.
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