Shri Piyush Goyal lauds PM Modi and President Biden for historic decision of resolving 6 outstanding trade disputes mutually

US to clear 70% of steel and 80% of aluminium applications for products originating in India for market access

Dispute resolution to improve India’s market access, can boost aluminium and steel exports by about 35%

Commerce and Industry Minister Shri Piyush Goyal highlighted the resolution of six outstanding WTO disputes between US and India through mutually agreed solutions as jointly communicated by the Prime Minister of India, Shri Narendra Modi and President of the United States of America H.E. Mr. Joseph Biden during the official state visit of the Prime Minister to the USA. The
Minister lauded the visionary leadership of the leaders of both countries in resolving the trade issues which enhances the trust and partnership between the two countries.

As a part of the agreement, the US has agreed to grant market access to steel and aluminium products under the exclusion process of Sec. 232 of the Trade Expansion Act 1962. India has agreed to remove the additional duty, i.e., retaliatory tariffs on certain products. However, the prevailing basic import duty on these products applicable to all imports will continue.

This market access will restore opportunities for Indian steel and aluminium exporters, which were restricted since 14th June 2018 because of the US 232 measure under which additional duties of 25% and 10% were levied on steel and aluminium products respectively.

As part of the market access, going forward, the US Department of Commerce will clear 70% of steel and 80% of aluminium applications for products originating in India. These applications will be made under the exclusion process of Sec. 232 by the importers on behalf of the exporters. It would provide significant impetus to raise India’s Steel and Aluminium exports by about 35%.

Mr. Goyal further stated that India and the US have actively engaged in discussions for the last two years to terminate these six outstanding disputes at the WTO. These disputes have been filed by India and the US over a decade, representing certain key sectors of the economy such as steel, aluminium, renewable energy, solar products, and certain key export-related measures.
This Mutually Agreed Solution (MAS) negotiated by both sides marks the culmination of protracted negotiations, and it is unprecedented in WTO history.

The six trade disputes that will be terminated are as follows. Three of them have been filed by India and three by the US:
United States – Countervailing Measures on Certain Hot-Rolled Carbon Steel Flat Products from India (DS436);

India – Certain Measures Relating to Solar Cells and Solar Modules (DS456);

United States – Certain Measures Relating to the Renewable Energy Sector (DS510);

India – Export Related Measures (DS541);

United States – Certain Measures on Steel and Aluminium Products (DS547);

India – Additional Duties on Certain Products from the United States (DS585)