WTO rules India violated global trade rules in IT dispute
WTO finds India breached global trading regulations in IT dispute: The World Trade Organization (WTO) has found that India has breached global trading regulations in a dispute over import duties on IT products with the European Union (EU), Japan, and Taiwan. According to the WTO panel’s report, India should change the measures to comply with its obligations. The dispute started in 2019 when the EU objected to India imposing import levies ranging from 7.5% to 20% on a variety of IT products such as mobile phones, integrated circuits, and components, claiming that the tariffs exceeded the maximum amount. That same year, Japan and Taiwan filed similar complaints.
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EU says up to 600 million euros of exports affected by India’s tariffs
The EU is India’s third-largest trading partner, and its exports worth up to 600 million euros ($654.66 million) are directly affected by India’s tariffs on an annual basis, according to Brussels. The Indian diplomatic mission in Geneva has not stated whether it will appeal against the decision. However, if it does, the case will remain in legal limbo as the WTO’s top appeals court is currently not functioning due to the United States opposition to judge appointments.
The WTO panel found that India had already brought some of the tariffs under scrutiny in line with global trading regulations since 2020. While the panel supported the complaints against India, it dismissed one of Japan’s claims that India’s customs notification lacked “predictability”. The EU’s trade department highlighted the importance of a rules-based trading system for strong trade ties, calling the levies “illegal” in a tweet.
Implications for India’s IT Industry and Trade Relationships
The decision has far-reaching repercussions for India’s IT industry, which is a critical component of the country’s economy. It remains to be seen whether India will accept the panel’s decision and bring its import duties into line with global trading rules or challenge the ruling.