The U.S. and India Resolve Several Outstanding Trade Issues

Posted on Jun 26

Article by: Rick Walker, Vice President, LCB, CCS

United States Trade Representative (USTR) Katherine Tai last week announced that the United States and India have finalized an agreement resolving several outstanding trade issues, including the termination of six open WTO disputes and the removal of retaliatory tariffs on certain U.S. agricultural products, including chickpeas, lentils, almonds, walnuts, apples, boric acid, and diagnostic reagents. The agreement, which was reached during the Official State Visit of Prime Minister Narendra Modi of the Republic of India, reflects the growing strength of the U.S.- India bilateral economic and trade relationship.

According to the USTR, these Indian tariff cuts will restore and expand market opportunities for U.S. agricultural producers and manufacturers. It is important to note that the resolution also maintains the integrity of the U.S. Section 232 measures. That means India agreed to lift its trade retaliation without the U.S. altering the steel and aluminum tariffs that President Trump imposed, a USTR spokesperson said.

According to U.S. Secretary of Agriculture Tom Vilsack, “Removal of these tariffs is a major win for America’s farmers, building on the $15 billion in new or preserved market access for agricultural products that USDA and USTR have delivered under the Biden-Harris Administration. Producers will now be able to increase sales of apples, chickpeas, lentils, almonds, and walnuts to one of the United States’ top trading partners. USDA applauds the Office of the U.S. Trade Representative for their diligence in reaching this agreement and for their leadership in strengthening our relationship with India. The outcome also underscores the competitiveness of America’s high-quality food and agriculture products, which have been exported at record levels over the past two years. The Biden-Harris Administration continues to prioritize new, more and better markets on behalf of American agriculture and is proud of the economic opportunity this creates for workers and for families.”

The six World Trade Organization disputes that will be terminated can be found below. These include three disputes initiated by India and three disputes initiated by the United States.

• 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 Aluminum Products (DS547); and
• India – Additional Duties on Certain Products from the United States (DS585).

Additionally, A joint statement issued by Biden and Modi highlighted India’s interest in being reinstated in the U.S. Generalized System of Preferences (GSP) program, which waives U.S. import duties on thousands of goods from developing countries. As you may remember, GSP expired in December 2020 and reinstatement is awaiting Congressional action, hopefully later in 2023.

Please contact your V. Alexander account team, or you may also contact our Trade Compliance team at with any questions.