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GENEVA: A panel of World Trade Centre (WTO) rules that
India had violated global trading rules on IT products in a dispute with European
Union (EU), Japan and Taiwan.
`We recommend that India bring such measures into conformity with its
obligations,` the WTO panel`s report said.
In 2019, the European Union challenged India`s introduction of import duties for
a wide range of IT product between 7.5 per cent and 20 per cent. These products
included mobile phones and components, as well as integrated circuits. The stance of EU in the complaint that the
products exceeded the maximum rate. Japan and Taiwan filed similar complaints in
the same year.
Statistics of European Commission says that EU is India`s third largest trading
partner, accounting for 10.8 per cent of total Indian trade in 2021.
In another statement, Brussels said that up to 600 million euros ($654.66
million) of its exports were directly affected by India`s tariffs on an annual
basis.
`Respect for the rules-based trading system is vital for a good trade
relationship,` its trade department added in a tweet, describing the tariffs as
`illegal`.
India`s diplomatic mission in Geneva did not immediately respond to a request
for comment on whether it would appeal against the ruling. If it does, the case
will sit in legal purgatory since the WTO`s top appeals bench is no longer
functioning due to US opposition to judge appointments.
However, the WTO’s Panel said that India had already brought some of the challenged
tariffs into line with global trading rules since last year.
While the panel broadly backed the complaints against India, it rejected one of
Japan`s claims that New Delhi`s customs notification lacked
`predictability`.-Reuters (Courtesy: Dawn.pk)
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