Six trade disputes between India and the United States will be resolved through the World Trade Organisation, while New Delhi will also remove retaliatory customs tariffs on 28 American goods.
This should increase trade between the countries and provide Indian exporters access to significant tax benefits.
The choices are being made as Indian Prime Minister Narendra Modi pays a state visit to the US at President Joe Biden and First Lady Jill Biden's invitation.
On the basis of national security, the US levied import levies of 25% and 10% on specific steel and aluminium products, respectively, in 2018. In retaliation, India in June 2019 levied customs fees on 28 American goods, including apples, boric acid, lentils, chickpeas, lentils, almonds, walnuts, and diagnostic tools.
United States Trade Representative Katherine Tai today announced that the United States and the Republic of India have agreed to terminate six outstanding disputes at the World Trade Organization. "India also agreed to remove retaliatory tariffs which it had imposed in response to the Section 232 national security measures on steel and aluminium," Tai said on Thursday.
It added that these tariff cuts will restore and expand market opportunities for US agricultural producers and manufacturers.
The six disputes include three initiated by India and as many by the US.
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.