WTO Dispute Remains Amid US Trade Talks

An American delegation that arrived in Delhi on Wednesday began talks with a Ministry of Commerce team Thursday

- Rajeev Jayaswal and Rezaul H Laskar

NEW DELHI: India will not withdraw its World Trade Organization (WTO) complaints against US tariffs on steel, aluminum, and automobiles unless the dispute is resolved, even as negotiating teams from both sides began intensive talks in New Delhi on Thursday to finalize an early bilateral trade deal, according to people familiar with the matter.

A team led by Assistant US Trade Representative Brendan Lynch arrived in Delhi late on Wednesday for discussions with a ministry of commerce team that began on Thursday.

The talks are scheduled for two days of engagements as both countries work toward an announcement on an early portion of the Bilateral Trade Agreement (BTA), potentially this month itself.

The negotiations come against a critical July 9 deadline when an additional 16% reciprocal tariff on Indian goods is set to take effect, adding urgency to the bilateral talks.

According to two officials aware of the matter, the parallel dispute at the World Trade Organization is expected to not interfere with the BTA negotiations, and India expects the issues to be resolved through mutually agreed solutions (MAS) mechanism, as was done for seven other disputes in June and September 2023.

"India is unlikely to withdraw its complaints against the US for illegally imposing safeguard tariffs on Indian steel, aluminum, and automobiles at the World Trade Organization," said one of these people, asking not to be named.