India’s WTO battles: From sugar subsidies to PLI schemes, here’s what New Delhi is defending
India is currently defending nine trade disputes at the World Trade Organization (WTO), with countries including Japan, China, the European Union (EU), Brazil and Australia challenging a range of its trade measures. The government has so far spent about Rs 2.43 crore on empanelled law firms to fight these cases, Parliament was informed on Tuesday.In a written reply to the Lok Sabha, minister of state for commerce and industry Jitin Prasada said that the department of commerce is being represented and assisted by the Centre for Trade and Investment Law (CTIL), the Centre for WTO Studies (CWS) and empanelled law firms in these disputes.He informed that around Rs 2.43 crore has been incurred towards the services of empanelled law firms in connection with the nine pending cases. Since the proceedings are still underway, any further expenditure will depend on how each dispute progresses.“There are currently nine disputes pending against India under the WTO Understanding on Rules and Procedures Governing the Settlement of Disputes, commonly referred to as the WTO Dispute Settlement Understanding,” Prasada said.According to the minister, the complaints have been filed by Japan (two cases), China (two cases), Brazil, Australia, Guatemala, the European Union (EU) and Chinese Taipei.
Steel imports and sugar support among key disputes
One of the pending disputes stems from Japan’s challenge to India’s safeguard measures on certain iron and steel products. Filed in May 2019, the case questions whether the measures comply with WTO rules.India has maintained that the safeguards were WTO-consistent and remained in force until they expired in the ordinary course. It has appealed the WTO panel’s report, but the appeal remains pending because the WTO Appellate Body is not functioning.Another group of disputes relates to India’s support measures for the sugar sector. Brazil, Australia and Guatemala have challenged India’s domestic support for sugarcane producers as well as alleged export subsidies for sugar, arguing that these are inconsistent with the WTO’s Agreement on Agriculture and the Agreement on Subsidies and Countervailing Measures (ASCM).India has defended its policies before the WTO panel, saying its support measures and export-related schemes are in line with its commitments and rights under the WTO agreements.“These measures have continued for the benefit of sugarcane producers. India has appealed the panel report, and the appeals remain pending,” Prasada said.
ICT tariffs challenged by EU, Japan and Chinese Taipei
The European Union, Japan and Chinese Taipei have separately challenged India’s tariff treatment of certain information and communications technology (ICT) products.“The complainants alleged that India has applied customs duties, in excess of the bound rates recorded in India’s WTO schedule, thereby according less favourable treatment to these ICT goods in violation of GATT 1994,” the minister said.India has defended the tariffs before the WTO panel, arguing that they are consistent with its rights and obligations under global trade rules. The measures remain in force to further their policy objectives.Prasada said India has appealed the panel reports in the disputes involving the EU and Japan. In the case involving Chinese Taipei, adoption of the panel report has been mutually deferred to allow negotiations on a mutually agreed solution (MAS).
China challenges PLI schemes and technology measures
China has brought two separate complaints against India.The first challenges certain Production Linked Incentive (PLI) schemes covering advanced chemistry cell battery storage, automobiles and auto components, electric passenger cars and high-efficiency solar photovoltaic modules, along with India’s tariff measures on certain technology products.According to China, these measures are inconsistent with the WTO’s Agreement on Subsidies and Countervailing Measures (ASCM), the General Agreement on Tariffs and Trade 1994 (GATT 1994) and the Agreement on Trade-Related Investment Measures (TRIMs Agreement).Prasada said India has defended the measures, maintaining that they are consistent with its rights and obligations under WTO agreements. The measures continue to remain in force and panel proceedings are ongoing.China has also filed another dispute over India’s measures in the solar cell, solar module and information technology sectors. A WTO dispute panel is yet to be constituted in that case.
