WTO accepts Taiwan, Japan’s request, sets up two new dispute panels in ICT case against India
30th July, 2020
Context:
The World Trade Organisation has set up two new dispute panels against India on July 29, accepting requests made by Taiwan and Japan.
The separate panels come after India refused a request from the WTO to combine all grievances to be addressed by a single panel.
All three allege that tariffs imposed by India on imported information and communications technology (ICT) products, infringe on WTO norms.
Countries Arguments:
They are against import duties imposed by India on electronic goods such as telephones for cellular networks; machines for reception, conversion and transmission or regeneration of voice, images or other data; and parts of telephone sets.
Duties on these products infringe on WTO norms under which India has committed to zero percent bound tariffs.
Indian arguments:
India has denied the allegations.
It pointed out that the ICT products in question are part of the WTO’s Information Technology Products (ITA-2) agreement, while New Delhi is only part of the ITA-1 pact signed in 1997.
India is committed to ITA-1 and abiding by it over the years.
Issue and Future:
The issue may take a year to a year-and-a-half to resolve even after the panels are formed; and the COVID-19 pandemic may further slow the process.
If the panel rules against India, the country can appeal in the WTO’s appellate body.
This body has not functioned since December 2019.
About WTO:
Intergovernmental organisation which regulates the international trade
Officially commenced on 1st Jan 1995 under the Marrakesh Agreement
Signed by 123 nations in 1994
WTO had replaced GATT (General agreement on tariffs and trade)
It deals with agriculture, textiles and clothing, banking, telecommunications, government purchases, industrial standards and product safety, food sanitation regulations, intellectual property and much more.
FUNCTIONS OF WTO
Administering WTO trade agreements
Forum for trade negotiations
Handling trade disputes
Monitoring national trade policies Technical assistance and training for developing countries
Cooperation with other international organizations
PRINCIPLES OF WTO
The basic principles of the WTO (According to the WTO):
Trade Without Discrimination:
Most Favoured Nation (MFN): treating other people equally
National treatment: Treating foreigners and locals equally