As of now, India not for WTO dispute body on drug row with EU

On an indication that the drug seizure dispute with the European Union (EU) would be resolved, has not sought setting up of a settlement body in the World Trade Organisation, Parliament was informed today.

"As EU has indicated to resolve the dispute, India has not yet sought establishment of a (settlement) panel in this dispute," Minister of State for Commerce and Industry Jyotiraditya Scindia said in a written reply to a question in Lok Sabha.

He said, the consultations with the EU are continuing. India and Brazil had approached the WTO in May this year against the alleged illegal detention of Indian generic medicines while in transit through the EU ports.

Scindia said since then, consultations have been held with the EU. Once a country seeks a redressal from the WTO against another country, the multilateral body asks the parties in the dispute to hold formal consultations. The matter is referred to the Dispute Settlement Body (DSB) in case these consultations do not yield satisfactory results.

Some countries in EU had seized Indian drugs alleging that they violated their patent laws. The Indian side has been maintaining that these are off patent medicines.

"Consultations have been very useful, as EU has acknowledged that some provisions of the relevant EC (European Commission) regulation may have been misinterpreted by the Customs authorities of EU...(It) has shown willingness to resolve the dispute without the need to seek establishment of a panel" he said.

In a separate reply, the minister said that in order to "provide remedy to the domestic industry against dumped imports causing material injury," the Directorate General of Anti Dumping and Allied Duties has recommended imposition of a levy on imports of a large number of chemicals. These include caustic soda, titanium dioxide, melamine and saccharin.