The US and India have agreed to terminate six outstanding disputes at the World Trade Organization, the US Trade Representative's (USTR) office was quoted by Reuters as saying in a statement on Thursday after a meeting between President Joe Biden and Prime Minister Narendra Modi. "India also agreed to remove retaliatory tariffs on certain US products including chickpeas, lentils, and other goods," the statement said.
Foreign Secretary Vinay Kwatra confirmed the information in a press briefing early Friday. He said six of the disputes have been resolved, while the seventh one remains under discussion.
"The resolution of the WTO dispute has happened between the two governments — the USTR on the US side and the Ministry of Commerce on the India side. Those are technical discussions, based on which the two countries decided that six of the seven disputes stand resolved," he said.
He further informed that "the GSP (Generalized System of Preferences ) is the congressional issue". He said it is not an issue that is entirely between the two governments. "There are elements in it which pertains to tariff fixations and trade quantum that takes place under those tariff lines, but its broadly much larger issue," he added.
"It's a issue which is an important priority for us. We have been taking it up consistently and very strongly with the relevant stakeholders in the US system, including the US Congress to ensure that the GSP benefits are restored for the Indian industry," Kwatra said.
He said India believes "that the segments of the industry which benefit from the GSP do make valuable contribution to both economies". He added that India will take up the matter "regularly and intensely" so that these benefits are restored.
The six trade disputes that were terminated are as follows.
These three were filed by India
> Certain Measures Relating to Solar Cells and Solar Modules (DS456)
> Export Related Measures (DS541)
> Additional Duties on Certain Products from the United States (DS585)
These three were filed by the US:
> Countervailing Measures on Certain Hot-Rolled Carbon Steel - Flat Products from India (DS436)
> Certain Measures Relating to the Renewable Energy Sector (DS510)
> Certain Measures on Steel and Aluminium Products (DS547)
US trade preference programs such as the GSP provide opportunities for many of the world’s poorest countries to use trade to grow their economies and climb out of poverty. The USTR says the GSP "is the largest and oldest US trade preference program" which promotes "economic development by eliminating duties on thousands of products when imported from one of 119 designated beneficiary countries and territories."
First Published: Jun 23, 2023 7:38 AM IST
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