India-US Trade Disputes Explained - Current Affairs

India and the United States have a long history of trade disputes at the World Trade Organization (WTO). In recent years, these disputes have become more frequent and contentious. This blog post will explore the history of India-US WTO disputes, the current status of these disputes, and the potential implications for future trade relations between the two countries.

The blog post will also discuss the role of the WTO in resolving trade disputes and the challenges that the WTO faces in this regard. Finally, the blog post will offer some thoughts on how India and the United States can move forward from their current impasse and build a more constructive trade relationship.

Q1: What was the reason behind the trade disputes between India and the US at the World Trade Organisation (WTO)?

A1: The trade disputes between India and the US at the WTO originated from the US imposing import duties on certain steel and aluminum products in 2018, citing national security concerns. In retaliation, India imposed customs duties on various American products in 2019.

Q2: What were the specific disputes raised by India and the US at the WTO? A2: India initiated three disputes, including countervailing measures on certain hot-rolled carbon steel flat products, measures related to solar cells and modules, and export-related measures. The US initiated three disputes, including measures on steel and aluminium products and additional duties on some US products.

Q3: How are trade disputes typically resolved at the WTO? A3: The first step in resolving a trade dispute at the WTO involves bilateral consultations between the involved parties. If the consultations fail to reach a resolution, either party can request the establishment of a dispute settlement panel. The panel's ruling or report can be challenged by the WTO's appellate body.

Q4: Why is the WTO's appellate body currently not functioning? A4: The WTO's appellate body is not functioning due to disagreements among member countries regarding the appointment of its members. The United States has been blocking the appointment of new members, leading to a backlog of pending disputes.

Q5: What are the expectations from the agreement to end the trade disputes between India and the US? A5: The agreement to end the trade disputes is expected to result in India removing retaliatory customs duties on 28 American products, such as almonds, walnuts, and apples. This move aims to restore and expand market opportunities for US agricultural producers and manufacturers in India.

Q6: Why is it important for India and the US to resolve the disputes on mutually agreed terms? A6: India and the US are major trading partners, and resolving their disputes on mutually agreed terms is crucial to maintain and strengthen economic and trade ties between the two countries. It will facilitate smoother trade and create opportunities for increased bilateral trade and investment.

Q7: How has the bilateral goods trade between India and the US evolved recently? A7: In the fiscal year 2022-23, the bilateral goods trade between India and the US increased to USD 128.8 billion, compared to USD 119.5 billion in the previous fiscal year (2021-22). This highlights the growing economic relationship and the significance of resolving trade disputes between the two nations.

Q8: What is the significance of informing the WTO about the resolution of the trade disputes? A8: Informing the WTO about the resolution of trade disputes is important as it ensures transparency and adherence to global trade norms. By keeping the WTO informed, India and the US demonstrate their commitment to upholding the rules-based multilateral trading system and maintaining the integrity of international trade