Both nations agree to end 6 trade disputes
New Delhi, June 23
Indian and the US have agreed to terminate six key trade disputes at the World Trade Organisation (WTO) with New Delhi agreeing to remove retaliatory tariffs on chickpeas, lentils, almonds, walnuts, apples, boric acid and diagnostic reagents.
Welcome move
It is a big victory and will be mutually beneficial for both countries.
Piyush Goyal, commerce minister
These were imposed in retaliation to the US levying 25 per cent and 10 per cent additional tariff on some steel and aluminum imports from India.
The six disputes include three initiated by India and as many by the US. “These tariff cuts will restore and expand market opportunities for US agricultural producers,” said US States Trade Representative Katherine Tai in a statement.
A joint statement issued after the meeting of PM Narendra Modi and US President Joe Biden said both countries had taken steps towards deepening bilateral cooperation to strengthen their economic relationship, including trade ties.
The agreement was reached after two years of negotiations between Commerce Minister Piyush Goyal and Tai. “As a result, US agricultural producers will now enjoy renewed access to a critical global market,” Tai added. Goyal said the decision was a “big victory” and would be mutually beneficial for both countries. There was, however, no resolution on restoring concessional duty for certain Indian products under the generalised system of preferences (GSP) by previous US President Donald Trump.
“This is a Congressional issue. There are elements which pertain to tariff fixation and the trade quantum that takes place under those tariff lines,” said Foreign Secretary Vinay Mohan Kwatra.
India was the largest beneficiary of the GSP which gave special duty treatment on $5.6 billion (Rs 45,000 crore) worth of exports to the US. The Trump administration had concluded that the withdrawal was necessary as India was denying adequate access to its agricultural and dairy markets and placed high price controls on medical devices. But an Observer Research Foundation study found of the nine sectors, six were unaffected and one electrical machinery sector grew.
