United States and India have reached an agreement to resolve their longstanding dispute at the World Trade Organization (WTO) concerning import restrictions on poultry products from the United States. This agreement was reached during bilateral discussions between Prime Minister Narendra Modi and US President Joe Biden in New Delhi on Friday, coinciding with Biden’s visit to India for the G20 Summit.
The resolution involves India offering concessions in the form of reduced duties on specific American products, including frozen turkey, frozen duck, as well as various cranberries and blueberries. The United States Trade Representative (USTR) office confirmed this agreement, highlighting its potential to expand economic opportunities for US agricultural producers in a crucial market while facilitating increased access for US products in India.
The origin of this dispute can be traced back to 2012 when the US filed a case at the WTO against India. The complaint revolved around India’s import ban on US poultry due to concerns about avian influenza, commonly known as bird flu. India’s stance faced a legal challenge at the WTO, resulting in unfavorable rulings against India at both the panel and appellate levels.
While India eventually lifted the poultry import ban, the United States remained dissatisfied with the conditions governing poultry shipments and the substantial import tariffs imposed by India. Consequently, the US did not withdraw the case at the WTO.
Recently, US Trade Representative Katherine Tai held discussions with India’s Minister of Commerce and Industry, Piyush Goyal, following the G20 Trade and Investment Ministers’ Meeting. During these talks, both sides expressed their mutual desire to find a swift resolution to the WTO dispute related to poultry products.
Katherine Tai expressed her views on the resolution, stating, “Resolving this last outstanding WTO dispute represents an important milestone in the U.S.-India trade relationship. Additionally, the reduction of tariffs on certain U.S. products provides critical market access for American agricultural producers.”
This resolution marks a significant step forward in addressing trade issues between the United States and India, fostering cooperation and economic opportunities for both nations.