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India appeals World Trade Organization's ruling against import duties on tech products

Analysts say appellate body of WTO is dysfunctional, meaning the judgment against New Delhi by its dispute settlement panel will not take effect

Our Special Correspondent New Delhi Published 16.12.23, 07:42 AM
Representational image.

Representational image. File picture

India has decided to challenge a ruling by a panel of the World Trade Organisation (WTO) that it violated global trading rules by imposing tariffs on some information technology products.

The appeal will be made before the appellate body of the WTO which isn’t functioning because the US has stymied certain appointments – and this effectively means that the ruling against India will not take effect.

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In 2019, the EU challenged India’s introduction of import duties of between 7.5 per cent and 20 per cent for a wide range of IT products such as mobile phones, and components as well as integrated circuits, saying they exceeded the maximum rate. Japan and Taiwan filed similar complaints that same year.

In April, the WTO panel ruled that India’s import duties violate global trading rules.

Analysts said since the appellate body of the WTO continues to remain inactive the appeal into the void is to pre-empt retaliatory action by the EU. The technical appeal would prevent the WTO ruling from becoming final and adopted.

Abhijit Das, a noted WTO expert, said: “The appellate body of the WTO continues to remain dysfunctional. As India and the EU were reportedly exploring the possibility of a mutually agreed solution, hence India refrained from appealing the panel report earlier.

“As the appellate body would not be in a position to hear the appeal, the dispute is likely to remain in limbo. It is apprehended that the EU might retaliate against India for its decision to appeal into the void.”

“India notified its decision to appeal the panel report in the case brought by the EU in ‘India Tariff Treatment on Certain Goods’. The appeal was circulated to WTO members on December 14,” WTO said in a statement.

Meet to review surge in steel imports

New Delhi: The government has reviewed the steel import situation amid concerns raised by the domestic industry over the increased inward shipments, according to an industry official.

Steel players have been raising concerns with various ministries, including steel and commerce, over the surge in imports from select countries such as China and Vietnam.

The ministry of steel on Wednesday held a meeting to review the import situation in the country, an industry executive said.

The meeting was chaired by steel secretary Nagendra Nath Sinha and was attended by representatives of various companies. Several ministry officials also participated in the hour-long meeting, he said.

“Steel makers informed the ministry that there has been a continuous surge in imports from countries such as China and Vietnam despite the same type of steel being available in India,” a ministry official said.

When asked about the steps, the official said any action can be initiated only after the industry submits the details to the ministry.

They have also suggested a few measures, including elimination of some duty cuts and tariff rate quota where prescribed limits are set for duty free inbound shipments. PTI

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