India, Chinese Taipei ask WTO body to delay ruling on ICT import duties dispute till July 26

Subject: IR

Sec: Int Org

Context:

India and Chinese Taipei have asked the WTO’s dispute settlement body not to adopt any ruling against New Delhi’s import duties on certain information and technology products till July 26 as both sides are engaged in resolving the matter.

More on news:

The issue came up during a meeting of the dispute settlement body (DSB) in Geneva on April 26.
DSB had agreed to three previous requests from India and Chinese Taipei to delay consideration of the reports.
As per rules of the WTO, the panel’s ruling will have to be adopted by DSB for implementation within 60 days of the release of the order. However, countries can mutually request DSB for delay in adoption of the ruling.
A dispute panel of the WTO on April 17, 2023, said import duties imposed by India on certain information and technology products violate global trading norms.
The ruling followed a case filed by the EU, Japan and Taiwan against these duties in WTO.
Besides formulating norms for global exports and imports, the Geneva-based 164-member multilateral body adjudicates trade disputes among the member countries.

About the case:

In May 2019, Chinese Taipei had filed a case against India in the WTO over the import duties imposed on certain electronic goods, including telephones for cellular networks; machines for reception, conversion and transmission or regeneration of voice, images or other data; and parts of telephone sets.
India has stated that these ICT products are part of WTO’s Information Technology Products (ITA-2) agreement, and New Delhi is not part of this pact. India is a part of ITA-1, signed in 1997, which did not have any obligation to eliminate customs duties on these products.
According to WTO rules, a member country can file a case in WTO if they feel that a particular trade measure is against the norms of WTO.
Bilateral consultation is the first step to resolving a dispute.
If both sides are not able to resolve the matter through consultation, either of them can approach the establishment of a dispute settlement panel.

About Dispute settlement body (WTO):

The General Council convenes as the Dispute Settlement Body (DSB) to deal with disputes between WTO members.
Such disputes may arise with respect to any agreement contained in the Final Act of the Uruguay Round that is subject to the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU).
The DSB has authority to establish dispute settlement panels, refer matters to arbitration, adopt panel, Appellate Body and arbitration reports, maintain surveillance over the implementation of recommendations and rulings contained in such reports, and authorize suspension of concessions in the event of non-compliance with those recommendations and rulings.