Walking on Eggshells in International Diplomacy:
International diplomacy often involves delicate handling of trade and commerce issues.
Bold statecraft is sometimes necessary to resolve trade frictions.
India and the U.S. settled seven long-standing trade disputes at the World Trade Organization (WTO) in the past year, including the final dispute over poultry products.
The Poultry Dispute:
Initiated in 2012, this dispute involved India's import restrictions on U.S. poultry due to avian influenza concerns.
The WTO ruled in favor of the U.S., requiring India to modify its measures.
After a prolonged stalemate, recent diplomatic efforts led to a settlement.
India avoided a $450 million annual claim and agreed to lower tariffs on certain U.S. products.
Diplomatic Breakthrough:
The resolution of this decade-old dispute marks a significant diplomatic achievement.
It demonstrates the ability of major trading partners to resolve complex trade issues through diplomatic channels.
The settlement was achieved despite domestic challenges and the absence of a functional WTO Appellate Body.
Bilateral Solutions in Trade Disputes:
Bilateral dispute resolution is common at the WTO.
The recent settlements between India and the U.S. are notable for the number and complexity of disputes resolved.
This approach underscores the importance of diplomacy in overcoming the limitations of multilateral bodies.
Promotes a stable international trade environment through focused bilateral negotiations.
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