WTO ruling on IT products: India, EU to jointly defer appeal by 3 months

India and the European Union (EU) have decided to mutually defer an appeal by 90 days with regard to their dispute at the World Trade Organization (WTO) over imposition of import duties on IT products by New Delhi, people aware of the matter said.

This means that India will postpone the appeal against the ruling and the EU will defer the adoption of the WTO dispute settlement panel’s April 17 report that had ruled that India violated its zero-tariff commitment under the Information Technology Agreement (ITA) under the multilateral trade body. The WTO had also asked New Delhi to eliminate tariffs on technology products.

According to the WTO rules, after the dispute settlement body comes up with its ruling, the right to file an adoption of the panel report and the right to appeal against the ruling is 60 days bound, unless there is a consensus among countries to not adopt or defer the report. In this case, India had time till 16 June to appeal against the ruling.

A deferment through mutual agreement of an appeal will give both parties time to resolve the dispute.

The WTO’s dispute settlement body’s ruling came after three similar but separate disputes were raised by the EU, Japan, and Chinese Taipei. Last week, India appealed against the order on the dispute, but only with Japan. In the case of Chinese Taipei, the time to appeal has been deferred by 90 days. 

“The decision is likely to be made public over the next few days,” the person cited above told Business Standard.

Business Standard had earlier reported that both sides were eyeing a mutually agreeable solution with regard to their dispute. However, in the absence of any solution, or if the talks fail, both sides may consider joint deferment.