India has formally approached Indonesia seeking consultations under the World Trade Organization framework, aiming to address the extension of safeguard measures imposed on cotton yarn imports. This initiative reflects India’s intent to protect its trade interests in a sector where it holds a significant stake, accounting for nearly 11.85 percent of Indonesia’s cotton yarn imports.

Indonesia’s move to prolong the safeguard action followed what it termed as unforeseen developments, pointing to a sharp rise in global Indian cotton yarn exports that also triggered a sudden uptick in volumes entering the Indonesian market. Concerned by the possible disruption this measure may bring to its exporters, India has requested virtual consultations to examine the rationale behind the extension and to facilitate an open dialogue.

Proposed to be held between 10 June and 13 June 2025, these consultations are not part of WTO’s dispute settlement process but fall under the Agreement on Safeguards. The aim is to exchange data, perspectives, and concerns to seek a mutual understanding over the continued imposition of trade barriers.

Indian authorities view this engagement as a constructive effort to balance national policies with broader trade cooperation. Given the strong presence of Indian cotton yarn in Indonesia’s textile value chain, the outcome of this dialogue could influence not just bilateral trade but also regional textile supply dynamics.

By initiating this consultative route, India reaffirms its commitment to fair trade practices while defending the interests of its textile export sector on the global stage.