Source: CIGI

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Context: India and the U.S. settled their last lingering WTO poultry dispute, marking the end of seven trade disputes resolved since Prime Minister Modi’s U.S. visit.

Details

Trade dispute on poultry products between India and USA at the WTO

• India had prohibited the import of various agricultural products from the US because of concerns related to Avian Influenza.
• The U.S. challenged India’s import restrictions on poultry products, which were imposed due to concerns about avian influenza (bird flu) potentially transmitting to humans.
• It argued that India deviated from internationally recognized standards that were set by the World Organization for Animal Health (formerly OIE) and failed to provide scientific justifications for its measures, violating the WTO’s Sanitary and Phytosanitary (SPS) Agreement.
• The US had moved the WTO against India in the poultry case in 2012. The WTO had then ruled that India’s ban on poultry imports–mainly chicken legs–from the US was inconsistent with the global trade norms. The US demanded compensation because India was not able to implement the decision in time.
• The announcement of the settlement of the case was made in September 2023, after the bilateral meeting between Prime Minister Narendra Modi and US President Joe Biden on the sidelines of the G20 summit.

Standards set by the World Organization for Animal Health

The Terrestrial Animal Health Code

• First published in 1968, provides standards for the improvement of terrestrial animal health and welfare and veterinary public health worldwide.
• These standards should be used by Veterinary Services to set up measures for the early detection, reporting and control of pathogenic agents, including zoonotic agents, and preventing their spread.
• Implementation of the recommendations in the Terrestrial Codeprotects animal health and welfare and ensures the safety of international trade in animals and animal products.

The Manual of Diagnostic Tests and vaccines for Terrestrial Animals

• First published in 1989, provides a standardised approach to the diagnosis of the diseases listed in the Terrestrial Code, to contribute to the improvement of animal health worldwide, and to facilitate health certification for trade in animals and animal products.
• It also provides internationally agreed diagnostic laboratory methods and requirements for the production and control of vaccines and other biological products.

The Aquatic Animal Health Code

• Introduced in 1995, provides standards for the improvement of aquatic animal health and welfare worldwide.
• These standards should be used by Aquatic Animal Health Services to set up measures for the prevention, early detection, reporting and control of pathogenic agents in aquatic animals (amphibians, crustaceans, fish and molluscs).
• Implementation of the recommendations in the Aquatic Code ensures the safety of international trade in aquatic animals and aquatic animal products.

The Manual of Diagnostic Tests for Aquatic Animals

• First published in 1995, provides a standardised approach to the diagnosis of the diseases listed in the Aquatic Code, to contribute to the improvement of aquatic animal health worldwide and to facilitate health certification for trade in aquatic animals and aquatic animal products.
• A new edition is published every 4 years but any updated or new chapters adopted by the World Assembly in between publications are made available on the online version.

 Litigotiation

• ‘Litigotiation’ is a blend of “litigation” and “negotiation,” referring to a strategic process where legal disputes are managed through a combination of courtroom litigation and settlement negotiations.
• This approach recognizes that most legal disputes do not end with a court verdict but rather with a negotiated settlement reached during the litigation process.

Other settled disputes

The six disputes which have been already settled include

• Countervailing measures on certain hot-rolled carbon steel flat products from India.
• Certain measures relating to solar cells and modules.
• Measures relating to the renewable energy sector.
• India's export-related measures, certain measures on steel.
• Aluminum products.

• Additional duties on some products from the US.

Conclusion

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.

Sources:

THEHINDU

PRACTICE QUESTION Q. Evaluate the WTO dispute settlement system. 150 words