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The US prefers bilateral discussions over WTO processes for resolving steel disputes with India.
Potentially faster resolution may boost India-US steel trade.
Highlights a global trend away from WTO-centric trade conflict resolution.
The United States has expressed openness to discussing its long-standing steel and aluminium tariffs with India—but notably, outside the World Trade Organization (WTO) framework. This comes amid global efforts to address trade disputes through alternative bilateral negotiations, particularly under shifting geopolitical dynamics and strategic economic alignments.
The US imposed additional tariffs on steel (25%) and aluminium (10%) imports from several countries, including India, during the Trump administration under Section 232, citing national security concerns. While India retaliated with duties on US products, efforts to resolve the impasse through the WTO have yielded little progress.
Officials from the US Trade Representative (USTR) reportedly conveyed their willingness to pursue direct, bilateral engagement with India instead of relying solely on multilateral legal mechanisms. This approach is seen as a faster, potentially more flexible route to reach agreements, although it sidesteps established global trade rules.
For India’s steel sector, this shift could open avenues to reduce trade tensions, improve export potential, and possibly revisit earlier quotas or duty structures. However, it also raises concerns over consistency in global trade practices and WTO’s diminishing role in dispute resolution.
Experts suggest this bilateral track could lead to strategic negotiations not just about tariffs, but broader trade cooperation in critical sectors such as green steel, decarbonization, and high-grade alloys.
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