WTO extends time to adopt panel ruling against India in EU tariff dispute

The World Trade Organisation (WTO) members have provided additional time to its Dispute Settlement Body (DSB) to adopt the ruling of the WTO panel against India on a dispute filed by the European Union (EU) against India’s tariff treatment on certain goods in the information and communications technology (ICT) sector.

The decision, taken at a meeting of the DSB on June 15 on a request from India and the EU, will allow the DSB to adopt the panel report by September 19 unless either the EU or India appeals the panel's findings or the DSB decides by consensus not to adopt the panel ruling.

The panel ruling in this India-EU dispute was circulated to WTO members on April 17. WTO dispute rules normally require the adoption or appeal of a panel report in 60 days of the report's circulation to members. The EU and India had sought additional time as both the countries felt it would help facilitate the resolution of the dispute.

The EU had complained the customs duties levied by India on certain ICT products were inconsistent with India’s commitments under the WTO. India argued that its binding tariff commitments are set forth in the Information Technology Agreement (ITA), and those commitments are static and did not change due to their incorporation into India's WTO Schedule. India also raised several arguments concerning the nature of the conditions attached to certain tariff treatments, as well as the tariff classification of certain products.

The Panel rejected India's assertions and upheld the EU position. It said that at the time of the Panel's establishment, India's tariff treatment of the specific ITC products was inconsistent with WTO rules because such products were subject to ordinary customs duties in excess of those set forth and provided in India's WTO Schedule. The Panel also found that India's tariff treatment of such products was less favourable than that provided in its WTO Schedule, such that India was acting inconsistently with Article II:1(a) of the GATT 1994.

The products mentioned in the complaint included machines and apparatus for the manufacture of semiconductor boules or wafers, semiconductor devices, electronic integrated circuits or flat panel displays, electrical transformers, static converters and inductors, telephone sets, including telephones for cellular networks or for other wireless networks, parts suitable for use with transmission apparatus for radio-broadcasting or television, television cameras, digital cameras and video camera recorders, electronic integrated circuits, optical fiber cables, etc.

It was in April 2019, the EU requested consultations with India concerning the tariff treatment that India accords to certain ITC goods alleging that it was inconsistent with WTO rules. Later, Singapore, Chinese Taipei, Canada, Japan, Thailand, the United States, and China requested to join the consultations.