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Home»News & Opinion»India, US decide to end six trade disputes at WTO
News & Opinion

India, US decide to end six trade disputes at WTO

The Dispatch StaffBy The Dispatch StaffJune 24, 2023No Comments6 Mins Read
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WASHINGTON: Terrorism is an enemy of humanity and there can be “no ifs or buts” in dealing with the scourge, Prime Minister Narendra Modi has said as he sought action against its state sponsors, in an oblique attack on Pakistan.

In his address to the joint meeting of the US Congress on Thursday, Prime Minister Modi said that more than two decades after 9/11 and over a decade after the 26/11 attacks in Mumbai, radicalism and terrorism still remain a pressing danger for the whole world.

“These ideologies keep taking new identities and forms, but their intentions are the same. Terrorism is an enemy of humanity and there can be no ifs or buts in dealing with it. We must overcome all such forces sponsoring and exporting terror,” Modi said in his 60-minute address in English.

In the India-US joint statement released after the talks between Prime Minister Modi and US President Joe Biden, the two countries expressed their resolve to fight terrorism and extremism.

“The United States and India stand together to counter global terrorism and unequivocally condemn terrorism and violent extremism in all its forms and manifestations,” it said.

Prime Minister Modi and President Biden reiterated the call for concerted action against all UN-listed terrorist groups including al-Qaeda, ISIS/Daesh, Lashkar e-Tayyiba (LeT), Jaish-e-Mohammad (JeM) and Hizb-ul-Mujhahideen, the statement said.

“They strongly condemned cross-border terrorism, the use of terrorist proxies and called on Pakistan to take immediate action to ensure that no territory under its control is used for launching terrorist attacks. They called for the perpetrators of the 26/11 Mumbai and Pathankot attacks to be brought to justice,” it said.

They noted with concern the increasing global use of unmanned aerial vehicles (UAVs), drones and information and communication technologies for terrorist purposes and reaffirmed the importance of working together to combat such misuse.

In his address to the US Congress on Thursday, Modi also made a veiled reference to China, saying the global order is based on respect for the principles of the UN Charter, peaceful resolution of disputes, and respect for sovereignty and territorial integrity.

Noting that the Ukraine conflict is causing great pain in the region, Modi said he has said directly and publicly, “This is not an era of war. But, one of dialogue and diplomacy.”
Representing 1.4 billion Indians, Modi said it is always a great honour to address the US Congress and an exceptional privilege to do so twice.

Modi became the first Indian leader to address the joint session of the US Congress twice on Thursday. He first addressed a joint meeting of the US Congress in 2016.

“Now, when our era is at a crossroads, I am here to speak about our calling for this century,” he said.

Modi said as there have been many advances in AI- Artificial Intelligence – in the past few years, at the same time, there have been even more momentous developments in other AI- America and India.

“We were strangers in the defence cooperation at the turn of the century. Now, the US has become one of our most important defence partners,” said Modi, who is currently on his maiden state visit.

His words received a standing ovation from US lawmakers.

Modi said democracy is one of their sacred and shared values.

“It has evolved over a long time, and taken various forms and systems. Throughout history, however, one thing has been clear. Democracy is the spirit that supports equality and dignity. Democracy is the idea that welcomes debate and discourse,” he said.

Democracy is the culture that gives wings to thought and expression, he said, adding that India is blessed to have had such values from times immemorial.

In the evolution of the democratic spirit, India is the “Mother of Democracy” he added.

Meanwhile, India and the US have agreed to end six key trade disputes at the World Trade Organisation (WTO) while New Delhi will also remove retaliatory customs duties on certain American products such as almonds, walnuts, and apples.

The six disputes include three initiated by India and as many by the US.

Announcing this, United States Trade Representative (USTR) Katherine Tai in a statement said that these tariff cuts will restore and expand market opportunities for US agricultural producers and manufacturers.

A joint statement issued after the meeting of Prime Minister Narendra Modi and US President joe Biden said that both the countries have taken steps towards deepening bilateral cooperation to strengthen their economic relationship, including trade ties.

“The leaders welcomed the resolution of six outstanding WTO disputes between the two countries through mutually agreed solutions,” it said.

The USTR said that the two countries “have agreed to terminate six outstanding disputes” at the WTO.

These include countervailing measures on certain hot-rolled carbon steel flat products from India, certain measures relating to solar cells and modules, measures relating to the renewable energy sector, export-related measures, certain measures on steel and aluminium products, and additional duties on some products from the US.

According to trade experts, both countries can resolve the disputes on mutually agreed terms and later inform the Geneva-based WTO about the same.

Commenting on this, commerce and industry minister Piyush Goyal said that this decision is a “big victory” and will be mutually beneficial for both countries.

He said, its a “package deal” and now there are no pending India-US disputes at WTO.

In 2018, the US imposed 25 per cent and 10 per cent import duties on certain steel and aluminium products, respectively, on grounds of national security. In retaliation, India in June 2019 imposed customs duties on 28 American products, including chickpeas, lentils, almonds, walnuts, apples, boric acid, and diagnostic reagents.

The US had filed a complaint in the WTO about India’s support measures to its export sector under different schemes. In 2019, a WTO dispute panel ruled that India’s export measures are inconsistent with global trade norms.

The US is the largest trading partner of India. In 2022-23, the bilateral goods trade increased to USD 128.8 billion as against USD 119.5 billion in 2021-22.

According to WTO rules, a member country can file a case in the Geneva-based multilateral body if they feel that a particular trade measure is against the norms of the world body. Bilateral consultation is the first step to resolving a dispute. If both sides are not able to resolve the matter through consultation, either of them can approach the establishment of a dispute settlement panel.

The panel’s ruling or report can be challenged by WTO’s appellate body.

Interestingly, the appellate body is not functioning because of differences among member countries to appoint its members. Several disputes are already pending with this body. The US has been blocking the appointment of the members.

 

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