Overview

• India formally asked Indonesia on June 2 for World Trade Organization consultations to examine the extension of safeguard measures on cotton yarn.
• Indonesia notified the WTO on May 24 that a sharp rise in Indian cotton yarn shipments threatened its domestic producers, triggering the safeguard extension.
• The talks will proceed under the WTO’s Agreement on Safeguards from June 10 to 13 without invoking the dispute settlement system.
• Indian exporters hold an 11.85 percent share of Indonesia’s cotton yarn imports, underscoring New Delhi’s substantial trade interest.
• New Delhi has reserved all its rights under WTO safeguard rules as it defends its suppliers’ market access in Indonesia.