India-US disputes: WTO forms panels to resolve issues

Panels have been formed by the WTO to resolve disputes between India and the US on two matters related with agricultural and steel products, Parliament was informed today.

The US and India held consultations under the dispute settlement mechanism of WTO in two different matters, "one concerning restrictions by India on import of certain agricultural products including poultry and the other concerning exorbitantly high countervailing duty imposed by US on certain steel products originating from India," Minister of State for Commerce and Industry D Purandeswari said.

She was replying to a question in the Rajya Sabha.

"Since consultations could not resolve the issues, panels have been composed by WTO on the request of India and US to resolve these disputes," she said.

The Minister said India considers that its arguments in both the disputes are well within its rights and obligations under WTO agreement and have significant merits to defend.

Consultations are the first step in the WTO dispute settlement process, and parties are encouraged to agree to a solution at this stage.

Under WTO rules, if the matter is not resolved through consultations within 60 days, both the sides may request for setting up of a WTO dispute settlement panel.

In April last year, India complained that the US had wrongly imposed countervailing duties, a kind of restrictive duty, on certain hot-rolled carbon steel flat products from India.

Countries impose countervailing duties when they believe that their domestic manufacturers are suffering losses because of competition from unfairly subsidised imports.

Earlier in March 2012, the US had dragged India to the WTO against New Delhi's ban on imports of certain American farm products, including poultry meat and eggs. The US had termed the ban as unjustified health-safety worries.