India and the United States have reached an agreement to resolve several trade disputes. Both countries have decided to withdraw three cases that were filed with the World Trade Organization (WTO). Additionally, India has withdrawn retaliatory tariffs on various US goods, including chickpeas, lentils, almonds, and apples.
The announcement was made during Indian Prime Minister Narendra Modi’s state visit to the United States. The two nations have also agreed to cooperate on several fronts, including reforming multilateral development banks like the World Bank and strengthening their trade and investment partnership.
The joint statement issued after PM Modi’s meeting with US President Joe Biden highlights their commitment to creating a dedicated pool of funds at the World Bank for concessional lending and enhancing support for the crisis.
This marks a change in stance by the Biden administration, which had previously emphasized leveraging existing capital to meet financing requirements.
The statement also acknowledges India’s demand for preferential duty for certain exports under the Generalized System of Preferences (GSP). The leaders have agreed to intensify work on determining the eligibility criteria for goods covered under the GSP.
One significant outcome of the visit is the resolution of six disputes at the WTO, including issues related to steel, aluminium products, and renewable energy. Indian Commerce & Industry Minister Piyush Goyal has described this agreement as a “big victory” that will benefit both countries.
USTR Katherine Tai has expressed satisfaction with the outcome, stating that it represents the culmination of intensified bilateral engagement over the past two years. She believes that US agricultural producers and manufacturers will now regain access to an important global market, further strengthening the trade relationship between the two nations.
The resolution of trade disputes and the withdrawal of retaliatory tariffs signify a positive step towards improving trade relations between India and the United States.