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WTO panel rules against India

Facts for Prelims (FFP)

Source: ET

 Context: World Trade Organization (WTO) panel has ruled that India has violated global trading rules by imposing import duties on IT products, such as mobile phones and components, and integrated circuits.

 

Background of the dispute:

India had introduced import duties of between 7.5% and 20% for IT products- mobile, components, and ICs. In 2019, the European Union (EU), Japan, and Taiwan filed complaints with the World Trade Organization (WTO), arguing that India’s import duties violated global trading rules and exceeded the maximum rate allowed.

 

WTO recommendation:

The WTO panel recommended that India should bring the measures into conformity with its obligations. India has already brought some of the challenged tariffs into line with global trading rules since last year.

 

What next?

If India appeals the ruling, the case will remain in legal limbo since the WTO’s top appeals bench is not functioning due to the US’s opposition to judge appointments.

 

About WTO Dispute Settlement System (DSS): There are two main ways to settle a dispute once a complaint has been filed in WTO—Mutually agreed solution and through adjudication (through the implementation of the panel—legally binding)

  • The appeal to the order is held at the Appellate Body (currently dysfunctional). Another mechanism for appeal is