India will appeal a US ruling World Trade Organization (WTO) trade dispute settlement body that ruled that the country’s import tariffs on certain information and technology products are not in line with global trade norms, Commerce Department sources said.
They said the ruling will have no adverse impact on the domestic industry.
The complaint will be lodged by India with the WTO’s Appellate Body, which is the final authority on such trade disputes, they said.
The Geneva-based WTO’s Dispute Settlement Body said Monday that India’s import tariffs on certain information and technology products violate global trade norms.
The ruling followed a dispute the European Union, Japan and Taiwan had filed with the WTO against these tariffs.
“We will appeal the decision and there will be no adverse impact on our industry,” the Commerce Department sources added.
On April 2, 2019, the EU challenged India’s imposition of import tariffs on a broad spectrum ICT Products such as mobile phones and components, base stations, integrated circuits and optical instruments.
The European Union had claimed that the measures appeared to be incompatible with certain WTO rules.
Later, Chinese Taipei and Japan also joined the dispute.
Under WTO rules, a WTO member or members may lodge a case with the Geneva-based multilateral body if they believe a particular trade measure violates WTO norms.
Bilateral consultations are the first step in resolving a dispute. If both sides are unable to resolve the matter through consultation, either side may request the establishment of a dispute resolution body. The decision or report of the panel may be appealed to the Appellate Body of the World Trade Organization.
Interestingly, the WTO’s Appellate Body is not functioning due to disagreements among member countries over the appointment of members to this body. Several disputes are already pending at the appeals court. The US blocks the appointment of members.
Even if the body that acts as the final arbitration board in such trade disputes begins its work now, it would take more than a year for India’s appeal to be accepted.
If the Appellate Body also rules against India’s support measures, trade experts say New Delhi must comply and change the way it provides those measures accordingly.
Last year, India appealed a decision by the World Trade Organization’s (WTO) Trade Disputes Body that ruled that the country’s national support measures for sugar and sugar cane were inconsistent with global trade norms.
