India to appeal WTO panel ruling on ICT import tariffs

  • April 19, 2023
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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India to appeal WTO panel ruling on ICT import tariffs

Subject : International Relations

Section:  International Organization

Context:

  • India is expected to appeal a recent ruling by a panel of the World Trade Organization (WTO) on its imposition of tariffs on mobile phones and electronic components.

More about the news:

  • The dispute settlement panel of the World Trade Organization (WTO) had ruled that India had violated global trading rules in a dispute with the European Union (EU), Japan and Taiwan over import duties on IT products.
  • The EU, Chinese Taipei (Taiwan) and Japan dragged India to the WTO dispute in 2019 on imposing tariffs on certain information and communications technology goods.
  • These products include mobile phones, microphones, transmission apparatus for radio broadcasting etc.
  • As per these petitions, India is signatory to the 1996 Information Technology Agreement (ITA).
  • Hence, it is required to eliminate tariffs on a range of products, including mobile handsets.
  • Many countries had complained that the imposition of tariffs on IT products by India was against the principles agreed upon under ITA.

What options does India have after the present WTO ruling.

  • India has the option to appeal against the present ruling.
  • If India does so, the case will sit in legal purgatory since the WTO’s top appeals bench is no longer functioning due to U.S. opposition to judge appointments.
  • Legal purgatory is a term used to describe a situation where a legal case or dispute is in a state of limbo, without resolution or a clear path forward.

What is Dispute Settlement Body of WTO:

  • The General Council convenes as the Dispute Settlement Body (DSB) to deal with disputes between WTO members.
  • The DSB has authority to:
    • Establish dispute settlement panels,
    • Refer matters to arbitration, adopt panel, Appellate Body
    • Maintain surveillance over the implementation of recommendations and rulings contained in arbitration reports, and
    • Authorize suspension of concessions in the event of non-compliance with those recommendations and rulings.
India to appeal WTO panel ruling on ICT import tariffs International Relations