India and the United States have agreed to settle six trade disputes at the World Trade Organisation (WTO) after the meeting between Prime Minister Narendra Modi and President Joe Biden.
The development is likely to boost trade between the countries and also help Indian exporters get key tax advantages.
The decision came amid PM Modi’s official visit to the US at the invitation of President Joe Biden and First Lady Jill Biden.
In 2018, the United States imposed 25 per cent and 10 per cent import taxes on certain steel and aluminium products, respectively, citing national security.
In response, India in June 2019 imposed customs duties on 28 American goods, including chickpeas, almonds, apples, lentils, walnuts, boric acid and diagnostic reagents.
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“Today’s agreement represents the culmination of intensified bilateral engagement over the last two years," said United States Trade Representative (USTR) Katherine Tai.
India agreed to lift retaliatory tariffs on certain US products which it had imposed in response to the Section 232 national security measures on steel and aluminium, Tai said on Thursday.
She also said, “These tariff cuts will restore and expand market opportunities of US agricultural producers and manufacturers”.
Of the six WTO disputes, three were initiated by India and the other three by the United States. They comprise measures on solar cells and solar modules, certain hot-rolled carbon steel flat products from India, export-related measures, the renewable energy sector, measures on steel and aluminium products and additional duties on some products from the US, according to the official statement.
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