Settlement of WTO dispute between India-US

Context

Recently, a representative from US trade emphasised that the settlement of WTo dispute between India and US is going to play a pivotal role in shaping the development of Agricultural and rural communities in the US.

All About the WTO Dispute between India-US

• During the rebel Trade Policy Forum (TPF), at the end of January 2023, India and the US established an offline discussion for the purpose of resolving the disputes on the WTO agenda.
• The TPF is a forum for spanning the bilateral agenda on trade and investment and gives both countries a chance to diversify their economies.
• Both parties shall be led to coordinate actively and mutually acknowledge the past incidents of wins and losses.
• In June, 2023, all the disagreements were terminated in accordance with the schedule of dispute settlement services established at the WTO with six disputes resolved, including the retaliatory tariffs of India toward some US farm produce.
• Resolutions of disputes were the case of the US challenging India’s 190% tariffs on steel and aluminium and India’s case against 10% US tariffs on it in its renewable energy sector and export subsidy programs.
• Furthermore, the US-imposed countervailing duty on the inward steel supply was among the topics of discussion. Natural science & biology The language of science has the ability to transform perceptions and alter our understanding of our world.
• It was, in fact, the last subdued dispute between the two nations in September 2023, which involved a poultry import from Washington and India’s lowered import tax on particular farm products.
• This way the conflicting incidents will be a sign of the resolution of the trade struggles and strengthening of the trade relations.
• Such joint effort manifests not only countries’ resolve to solve trade sharp and blunt items through peaceful means but also willingness to dialogue and compromise.
• The resolution of disputes will be hoped for to improve the trade stability and the two nations to have a thriving economy.

Possible Impact of the Dispute resolution on the economy of both the country

• The United States emerged as the largest trading partner of India in 2022-23 followed by an overwhelming increase in bilateral trade to USD 128.55 billion, indicating an impressive growth rate of 7.65%.
• The settlement of the trade arguments between India and the US present an enhanced market access for Indian agricultural products such as chickpeas, lentils, almonds, walnuts, and apples which are widely leaving a positive impact over the Indian farmers across the country.
• Apart from this, the USA was also allowed to lower tariffs on soybean, poultry, blueberries, and cranberries to provide market access to agri growth of the country. Overall the two nations have grown economically and led to higher global economic growth.
• These developments emphasise the onset of a good way of leading to the improvement of bilateral trade relations between India and USA, which, in turn, will increase the economic growth of these countries and revive the agricultural development of their societies at large.

Conclusion

• The WTO settlement between India and the US on agricultural disputes is of utmost importance and a milestone in the history of the US, especially for rural and farmer communities. 
• The solved six disputes between nations through the act of joint coordination and dialogue, which included tariffs on Indian farm produce after the United States took retaliation action. 
• This resolution provides opportunities for Indian agriculture products like chickpeas and almonds to be traded by the US market , while the soybeans and poultry production could have a more broad access to the Indian market. 
• These joint enterprises guide significant bilateral trade relations to further up economic development and agriculture between the two countries.

Source: The Hindu Businessline

UPSC Mains Practice Question

Q.Discuss the significance of the recent settlement of WTO disputes between India and the US. Analyse its impact on bilateral trade relations, particularly in the agricultural sector. How does this resolution contribute to the economic growth and development of both countries? Explain with examples.

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