Katherine Tai, United States Trade Association ambassador, recently issued a press release announcing that the U.S. and the Republic of India have resolved six trade disputes, leading to the lifting of retaliatory tariffs imposed by India on American goods such as apples, chickpeas and almonds. The resolution enhances market prospects for American agricultural producers and manufacturers and reaffirms the validity of the United States' Section 232 regulations.
“Prime Minister [Narendra] Modi’s visit has underscored the importance of the U.S.-India bilateral relationship and our cooperation on a range of shared priorities,” Tai said in the June 22 release. “Today’s agreement represents the culmination of intensified bilateral engagement over the last two years, including through the U.S.-India Trade Policy Forum, to deepen our economic and trade ties. As a result of our work, U.S. 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. I look forward to continue to working with my counterpart, Minister Goyal, as we identify additional ways to bring our people and our economies together.”
India and the U.S. agreed to settle six unresolved trade disputes. The United States' Section 232 national security measures on steel and aluminum prompted India to put retaliatory tariffs on a number of American goods, including apples, boric acid, chickpeas, lentils, almonds, walnuts and diagnostic tools. India has since agreed to lift those tariffs. The market prospects for American agricultural producers and manufacturers will be restored and increased by the tariff reductions.
The six World Trade Organization issues that will be resolved include three conflicts that India and the U.S. each brought on their own. The U.S.-initiated disputes: (DS436) Countervailing Measures on Certain Hot-Rolled Carbon Steel Flat Products from India, (DS510) Certain Measures Relating to the Renewable Energy Sector, and (DS547) Certain Measures on Steel and Aluminium Products. The disputes brought by India: (DS456) Certain Measures Relating to Solar Cells and Solar Modules, (DS541) Export Related Measures, and (DS585) Additional Duties on Certain Products from the United States.
The official letters exchanged between the two countries can be found here.
The deal begins a new chapter of bilateral cooperation that will expand and broaden the trade relationship between the United States and India, in keeping with the close connection emphasized by Modi's recent official state visit. A joint statement from the 13th Ministerial-level meeting of the January U.S.-India Trade Policy Forum can be found here.
The resolution of the trade disputes holds immense significance for both nations, fostering economic growth and creating opportunities for collaboration in various sectors. With the removal of retaliatory tariffs, American agricultural producers and manufacturers can once again tap into the Indian market, ensuring a mutually beneficial trade relationship between the two countries.
