World Trade Organization (WTO) members have given their Dispute Settlement Body (DSB) additional time to pass the WTO body’s decision against India in a dispute brought by the European Union (EU) over India’s tariff treatment of certain goods in the world sector of information and communication technology (ICT).
The decision, taken at a DSB meeting on June 15 at the request of India and the EU, allows the DSB to adopt the panel’s report until September 19, barring an appeal from either the EU or India contest the panel’s findings, or the DSB decides by consensus not to accept the panel’s decision.
The panel’s ruling in this dispute between India and the EU was circulated to WTO members on April 17. WTO dispute rules normally require a panel report to be accepted or appealed within 60 days of the report being circulated to members. The EU and India had requested additional time as both countries believed it would help resolve the dispute.
The EU had complained that tariffs imposed by India on certain ICT products were inconsistent with India’s obligations under the WTO. India argued that its binding tariff obligations are set out in the Information Technology Agreement (ITA) and that these obligations are static and have not changed as a result of their inclusion in India’s WTO schedule. India also made several arguments regarding the nature of the conditions attached to certain customs treatments as well as the tariff classification of certain products.
The panel dismissed India’s claims and upheld the EU’s position. It states that at the time of the inauguration of the panel, India’s tariff treatment of the specific ITC products was inconsistent with WTO rules, as these products were subject to normal tariffs in excess of the tariffs established and provided for in India’s WTO schedule. The Panel also found that India’s tariff treatment for such products was less favorable than that provided for in the WTO schedule, causing India to act in contravention of Article II:1(a) of the GATT 1994.
The products cited in the complaint included machinery and equipment for the manufacture of semiconductor bodies or wafers, semiconductor devices, electronic integrated circuits or flat panel displays, electrical transformers, static converters and inductors, and telephone sets, including telephones for cellular or other wireless networks, parts for Use with radio or television transmission equipment, television cameras, digital cameras and video camcorders, electronic integrated circuits, fiber optic cables, etc.
In April 2019, the EU requested consultations with India on the tariff treatment India is granting to certain ITC goods, arguing that it was incompatible with WTO rules. Later, Singapore, Chinese Taipei, Canada, Japan, Thailand, the United States and China applied to participate in the consultations.
