India-USA : WTO Issues

  • India has moved the World Trade Organisation (WTO) against the US as it has not yet complied with the rulings of the WTO pertaining to imposition of high import duty on certain Indian steel products.
  • In December 2014, the WTO’s appellate body pronounced a ruling against the act of US which is imposing high import duty on certain Indian steel products.
  • It had ruled that the imposition of import duty on steel products was inconsistent with various provisions of the Agreement on Subsidies and Countervailing Measures.  
  • India has sought consultation with the US for compliance of the WTO’s rulings. 
  • If the US refuses to comply then India has planned to approach the WTO’s compliance panel.
  • In order to comply with the WTO rulings on countervailing duties on imports of hot-rolled carbon steel products from India, the US needs to amend its domestic norms.
  • Earlier, the US had moved the arbitration panel of the WTO against India as it complained that India had failed to remove trade restrictions on American poultry.
Solar Panel Dispute:
  • India has lost the dispute on solar panel in WTO in 2016
  • India had agreed to remove all the inconsistent measures for implementing the Jawaharlal Nehru National Solar Mission, under which government imposed local content requirements for manufacturing solar modules and solar cells.
  • At a meeting of the WTO’s dispute settlement body (DSB), the US and India clashed over Washington’s decision to seek trade retaliatory measures without establishing that New Delhi failed to remove local content requirements for manufacturing solar cells and solar modules by the 14 December deadline
  • On 19 December, the US sought permission from the WTO for imposing trade retaliatory measures against India because of New Delhi’s failure to comply with the DSB’s recommendations in the dispute.
  • The US did not provide any evidence to prove its claim that India failed to implement the trade body’s recommendations. 
  • The European Union, Canada, Brazil, China, and Japan supported India in the solar panel dispute with the US at the World Trade Organization (WTO.
  • According to these countries, Washington’s demand for trade retaliatory measures against India is unjustified.

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