India has recently been ruled against by the World Trade Organization's (WTO) dispute panel regarding the import duties imposed by the country on certain information and technology products. The panel has stated that such import duties violate global trading norms. The European Union (EU), Japan, and Taiwan had filed the dispute against India, challenging the introduction of import duties by the country. India is now planning to appeal against the decision, and the appeal will be filed in the WTO's appellate body, which is the final authority on such trade disputes.
Background of the Dispute
The dispute in question involves the introduction of import
duties by India on a wide range of ICT products such as mobile phones and
components, base stations, integrated circuits, and optical instruments. The EU
had first challenged the introduction of these import duties by India in 2019,
claiming that the measures appear to be inconsistent with certain provisions of
the WTO. Taiwan and Japan have also joined the dispute later. The WTO rules
allow any member or members to file a case in the multilateral body if they
feel that a particular trade measure is against the norms of the WTO.
WTO Ruling and India's Response
The WTO's dispute panel, based in Geneva, ruled against India
on Monday, stating that the import duties imposed by the country on certain
informational and technology products violate global trading norms. The
commerce ministry sources in India have stated that the ruling will not have
any adverse impact on the domestic industry. The sources also added that India
will appeal against the decision and that the appeal will be filed in the WTO's
appellate body, which is the final authority on such trade disputes.
Steps to Resolve the Dispute
Bilateral consultation is the first step to resolve a dispute.
If both sides are not able to resolve the matter through consultation, either
of them can approach for the establishment of a dispute settlement panel. The
panel's ruling or report can be challenged at the World Trade Organization's
appellate body. However, the appellate body of the WTO is not functioning
because of differences among member countries to appoint members in this body.
Several disputes are already pending with the appellate body, and the US has
been blocking the appointment of the members. If the appellate body also passes
a ruling against India's support measures, New Delhi will have to abide by that
and make appropriate changes in the way it provides those measures.
Conclusion
The dispute between India, the EU, Japan, and Taiwan regarding
the import duties on certain information and technology products is a prime
example of how the global trading norms are enforced. The WTO's dispute panel
has ruled against India, stating that the import duties imposed by the country
violate global trading norms. However, India is planning to appeal against the
decision in the WTO's appellate body, which is the final authority on such
trade disputes.
FAQs
What is the dispute between India, the EU, Japan, and Taiwan regarding?
The dispute involves the introduction of import duties by
India on a wide range of ICT products such as mobile phones and components,
base stations, integrated circuits, and optical instruments.
What did the WTO's dispute panel rule against India?
The WTO's dispute panel ruled against India, stating that the
import duties imposed by the country on certain informational and technology
products violate global trading norms.
Will the ruling have any adverse impact on India's domestic industry?
According to the commerce ministry sources in India, the
ruling will not have any adverse impact on the domestic industry.
What is the first step to resolve a dispute according to WTO rules?
Bilateral consultation is the first step to resolve a dispute according to WTO rules.
