India has started discussions with Indonesia at the WTO about Indonesia’s safeguards on cotton yarn imports. Although Indonesia and India are not formally in the WTO dispute resolution process, both countries agreed to have consultations at the WTO to allow for dialogue and an information exchange concerning Indonesia’s safeguards on cotton yarn imports.
Indonesia justified the extension of the safeguard measures by pointing to “unforeseen developments,” especially the augmentation in global Indian cotton yarn exports, which resulted in a “significant increase” for shipments to Indonesia. At present, roughly 11.85 per cent of Indonesia’s cotton yarn imports come from India, a clear trade interest for India.
As an affected party, it is reasonable for India to utilize provisions of the WTO’s Agreement on Safeguards and bring their concerns forward for greater transparency in Indonesia’s review process. In a written letter, India made a proposal for virtual consultations between 10th June and 13th June 2025, or at a mutually agreeable time.
This may signal that India intends to take a more proactive approach to protect its textile exports against increasing global protectionism, particularly in cotton yarn, in which India is reasonably competitive.
