Nearly a month after Prime Minister Narendra Modi had a "successful" visit to the United States, both nations have mutually resolved all six trade disputes pending at the World Trade Organisation (WTO).
An official said that both countries have informed the WTO's dispute settlement body (DSB) about the resolution of all the pending disputes.
The WTO has already issued a communication with regard to one of the disputes related to the imposition of additional customs duties by India on 28 US products. The official added that the remaining five communications would also be issued by the WTO.
"The United States and India are pleased to notify the DSB (dispute settlement body), in accordance with Article 3.6 of the Understanding on Rules and Procedures Governing the Settlement of Disputes, that the parties have reached a mutually agreed solution to the matter raised in this dispute," according to a communication of the WTO dated July 17.
The two countries have urged the dispute panel that its report should be confined to a brief description of the case and information that a solution has been reached by the two.
The trade dispute which was resolved pertains to a complaint filed by the US in 2019 against India.
What happened in 2019?
India had imposed additional customs duties on 28 US products including chickpeas, lentils and apples in retaliation to the US increasing duties on certain steel and aluminium products.
Against this resolution, India would remove additional duties on eight US products, including chickpeas, lentils and apples, which were imposed in 2019 in response to America's measure to increase tariffs on certain steel and aluminium products, government sources said.
During the recent state visit of Prime Minister Narendra Modi to the US, both countries decided on the termination of six WTO (World Trade Organisation) disputes and the removal of these retaliatory tariffs on certain US products.
US too had reacted sharply
In 2018, the US imposed an import duty of 25 per cent on steel products and 10 per cent on certain aluminium products on grounds of national security. In retaliation, India in June 2019 imposed customs duties on 28 American products.
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.
(With inputs from agency)