India and the US have notified the World Trade Organisation that both countries have reached a mutually agreed solution to a dispute that involved New Delhi putting additional duties on some products from the US to retaliate against extra duties its steel and aluminium products faced.
In a communication to the WTO both countries have said that “the parties have reached a mutually agreed solution to the matter raised in the dispute”.
An official said that both the countries have also informed the WTO’s dispute settlement body (DSB) about the resolution of five other pending disputes. Formal communication from the WTO on these disputes will follow shortly.
Of the six disputes – three were initiated by India and three by the US.
During the visit of Prime Minister Narendra Modi to the US last month both countries had agreed to close all pending disputes at WTO.
With the closure of the dispute formally notified on Monday, steel and aluminium products exports from India to the US would get an exemption from additional duties. Around 70% of steel exports for 80% of aluminium exports will get exemption from the additional duties that were imposed in 2018 by the US.
In return India has assured the US that it would remove retaliatory tariffs it had imposed on almonds, apples, chickpeas, lentils, walnuts, boric acid and diagnostic reagents among others
The Trump administration had imposed 25% additional import duties on steel imports and 10% in aluminium in 2018 under a national security law. These came to be known as Section 252 tariffs. They were imposed on imports from all countries barring Canada, Mexico, Australia, Argentina, South Korea, Brazil and the European Union.
In retaliation India had imposed additional duties on imports from the US on 28 products including almonds, apples, boric acid, motorcycles and some products of iron and steel.
Other disputes at the WTO between the two countries involve Countervailing Measures by US on Certain Hot-Rolled Carbon Steel Flat Products from India. The US filed against Certain Measures Relating to Solar Cells and Solar Modules by India and Certain Measures Relating to the Renewable Energy Sector.
One dispute involved a complaint by the US against export incentive schemes by India. In one case the US complained against Certain Measures on Steel and Aluminium Products and in a same way India had raised the issue of Additional Duties on Certain Products from the United States.