The Panel of WTO rules against India in IT Tariffs dispute with EU, Japan and Taiwan

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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)