US demands compensation from Indiafor Poultry import restrictions

Trade battle between the US -world’s largest economy and India world’s fastest growing economy is on an uptrend and WTO battles have increased in recent years. the latest incident is the US’s follow up compensation demand out of its poultry trade dispute victory at WTO’s DSB(Dispute Settlement Body).

In the latest development, the US has requested WTO to initiate compensation from India for the poultry trade restrictions against US imports. Earlier, the US had won a case against India’s import restrictions against US imports including poultry, egg and live pigs at WTO’s DSB.

The DSB in June 2015, ruled that Indian ban on import of poultry meat, eggs and live pigs from the US was “inconsistent” with the international norms. India imposed such restrictions on the ground of avian flu threat and the US established India has more incidence of the virus than the US.

Trade policy in the US are framed by Trade Representative’s Office and it estimated that the US compensation is around $300 mn which is equivalent to one-year export to India of such goods.

Removal of restrictions means US products can establish among the high end consumers in India through various MNC outlets. Expanding income and huge middle class is makes India a valuable market for US agricultural exports.