India has requested WTO consultations with Indonesia over its extended safeguard measures on cotton yarn, addressing concerns about trade impacts without engaging formal dispute procedures.
India has initiated consultations with Indonesia under the World Trade Organization (WTO) framework concerning the extension of Indonesia’s safeguard measures on cotton yarn. This move aims to address India’s concerns about the impact of Indonesia’s safeguard actions on its cotton yarn exports.
The consultations were sought on June 2, 2025, as per the WTO’s rules but notably do not fall under the WTO’s formal dispute settlement mechanism. The safeguard measures in question are temporary trade restrictions Indonesia has imposed to protect its domestic cotton yarn industry from import surges.
India, one of the world’s largest cotton yarn producers and exporters, has raised these concerns through its Ministry of Commerce and Industry based in New Delhi. The WTO, headquartered in Geneva, Switzerland, serves as the global international organization that regulates trade rules between nations to ensure smooth and fair trade flows.
The ongoing dialogue reflects India’s effort to resolve the matter through consultations before potentially escalating it to formal dispute proceedings if necessary. The discussions are part of the broader trade dynamics between the two countries, with cotton yarn being a significant commodity in the textile trade sector.
