According to the agreement signed by the two nations during Prime Minister Narendra Modi’s visit to the US last month, India and the US have mutually settled all six trade disputes that were pending at the World Trade Organisation (WTO). According to the source, both nations have informed the WTO’s dispute settlement body (DSB) of the conclusion of all outstanding problems.

Regarding one of the issues involving India’s imposition of increased customs duties on 28 US items, the WTO has already released a letter.

The official continued by saying that the WTO would also release the remaining five communications.

According to a communication from the WTO dated July 17, “The United States and India are pleased to notify the DSB (dispute settlement body) that the parties have reached a mutually agreed-upon resolution to the matter raised in this dispute,” in accordance with Article 3.6 of the Understanding on Rules and Procedures Governing the Settlement of Disputes.

The two nations have encouraged the dispute panel to limit its report to a brief summary of the case and information that the two have come to an agreement.
The trade dispute that was settled relates to an accusation made against India by the US in 2019.

In retaliation for the US imposing charges on several steel and aluminium exports, India had levied additional customs duties on 28 US products, including chickpeas, lentils, and apples.

India will remove further levies on eight US items, including chickpeas, lentils, and apples, in opposition to this resolution. These penalties were imposed in 2019 in reaction to America’s plan to hike tariffs on specific steel and aluminium exports.

Both nations reached agreements to resolve six WTO (World Trade Organisation) issues and remove these retaliatory tariffs on certain US goods during Prime Minister Narendra Modi’s recent official visit to the US.

On the basis of national security in 2018, the US levied import duties of 25% on steel products and 10% on some aluminium items. In retaliation, India added customs fees to 28 American items in June 2019.

India’s top trading partner is the United States. The bilateral trade in products climbed to USD 128.8 billion in 2022–2023 from USD 119.5 billion the previous year.

Three of the six conflicts were started by India, while the other six by the US.

One of these concerned the implementation of countervailing tariffs on specific hot-rolled carbon steel flat products from India, which India had complained about to the US. India launched a lawsuit against the US on September 9, 2016, regarding domestic content requirements and subsidies implemented in the energy sector by the governments of the states of Washington, California, Montana, Massachusetts, Connecticut, Michigan, Delaware, and Minnesota.

Another issue between the US and India concerned the Jawaharlal Nehru National Solar Mission’s domestic content criteria for solar cells and solar modules. The US brought a lawsuit in 2018 against India’s purported export subsidy policies.

Similar to this, the US filed a challenge against New Delhi on July 3, 2019, regarding the application of additional duties with regard to certain items of US origins.