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Info Service on WTO and Trade Issues (Sept23/05) New Delhi, 11 Sep (D. Ravi Kanth) — The United States has apparently secured enhanced market access for several products including frozen turkey and duck, and fresh, frozen, dried and processed blueberries and cranberries, in a trade dispute that was first launched by Washington at the World Trade Organization in 2012 against India’s restrictions on several poultry products due to Avian influenza, said people familiar with the development. India and the US apparently reached an agreement on 26 August immediately after the G20 Trade and Investment Ministers Meeting (TIMM) in Jaipur, India. The groundwork for the resolution of this controversial trade dispute was done over the past several months as part of the growing cordiality between these two countries. In the complaint launched against India in March 2012, the US challenged the prohibitions imposed by India on the importation of various agricultural products from the United States purportedly because of concerns related to Avian influenza. The US complained against several Indian government legal provisions such as the Indian Livestock Importation Act, 1898 (“Livestock Act”); a number of orders issued by India’s Department of Animal Husbandry, Dairying, and Fisheries pursuant to the Livestock Act, most recently S. O. 1663(E); as well as any amendments, related measures, or implementing measures. Despite the apparent spins and twists in the resolution of this particular trade dispute since 2012, a ruling by a compliance panel has been put in abeyance since last year. According to a WTO summary, the dispute remained unresolved after the chair of the compliance panel informed the Dispute Settlement Body (DSB) of several joint requests from the parties to postpone the issuance of its final report. According to a communication dated 2 December 2022, the chair of the compliance panel informed the DSB that the panel had accepted an additional joint request from the parties to postpone the issuance of its report, which was expected to be released in March 2023. Almost five months after that communication, the two sides announced the compromise at the bilateral meeting between the Indian Prime Minister Narendra Modi and the US President Joe Biden a day before commencement of the G20 leaders’ meeting on 9 September. More importantly, the US apparently managed to secure market access for products such as fresh, frozen, dried, and processed blueberries and cranberries, through significant tariff reductions agreed by the two countries, said a person, who was involved in the dispute at various stages. “Resolving this last outstanding WTO dispute represents an important milestone in the US-India trade relationship, while reducing tariffs on certain US products enhances crucial market access for American agricultural producers,” said US Trade Representative (USTR) Ambassador Katherine Tai. “These announcements, combined with Prime Minister Modi’s State Visit in June and President Biden’s trip to New Delhi this week, underscores the strength of our bilateral partnership. I look forward to continuing to work with [Commerce] Minister Goyal to deliver inclusive economic opportunities for our people.” In June, the United States and India terminated six outstanding disputes at the World Trade Organization, according to a US press statement. Further, the resolution of this dispute also involved India’s decision to reduce tariffs on certain US products, including chickpeas, lentils, almonds, walnuts, apples, boric acid, and diagnostic reagents, which are not part of this trade dispute. “Today’s agreement resolves the remaining long-standing dispute and opens a new chapter of bilateral cooperation that will deepen the trade relationship between the United States and India,” according to the USTR’s press release. +
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