India currently faces 9 WTO disputes over sugar subsidies, ICT tariffs, PLI

Commerce MoS Jitin Prasada said India is defending nine WTO disputes involving sugar subsidies, ICT tariffs and PLI schemes, with appeals pending in several cases.

India is currently defending nine disputes at the World Trade Organization (WTO) involving Japan, Brazil, Australia, Guatemala, the European Union (EU), Chinese Taipei, and China against New Delhi’s sugar subsidies, information technology tariffs and production-linked incentive (PLI) schemes, Minister of State for Commerce & Industry Jitin Prasada said on Tuesday.

 

Prasada in a written reply to a question in the Lok Sabha said the Department of Commerce has engaged the services of the Centre for Trade and Investment Law (CTIL), the Centre for WTO Studies (CWS) and empaneled law firms to represent India’s interests in the disputes. The expenditure on empaneled law firms has so far amounted to about ₹2.43 crore, with further spending contingent on the progress of the ongoing cases, he added.

 

 

Three of the disputes brought separately by Brazil, Australia, and Guatemala relate to India’s support measures for the sugar sector and export-related schemes. The complainants alleged that India's domestic support and export measures distorted global sugar prices, which are inconsistent with provisions of the WTO’s Agreement on Agriculture and Agreement on Subsidies and Countervailing Measures (ASCM), which prohibits subsidies tied to export performance. India has defended the measures have continued for the benefit of sugarcane producers and they are consistent with rights and obligations under the WTO agreements. India has appealed the panel reports, with the appeals remaining pending, Prasada said.

 

The European Union (EU), Japan and Chinese Taipei challenged customs duties imposed by India on certain information and communications technology (ICT) products alleging that the duties are more than the bound rates recorded in India’s WTO Schedule. While India has appealed the panel reports in the cases brought by the EU and Japan, adoption of the panel report in the dispute initiated by Chinese Taipei has been deferred as parties negotiate a mutually agreed solution.

 

Japan has also challenged India’s safeguard measures on certain iron and steel products. India appealed the panel report, with the appeal remaining pending because of the continued non-functioning of the WTO Appellate Body.

 

China has initiated two disputes against India. One challenges production-linked incentive (PLI) schemes for advanced chemistry cell batteries, automobiles and auto components, electric passenger vehicles, and high-efficiency solar photovoltaic modules, as well as tariff measures on certain technology products. The second concerns trade measures affecting solar cells, solar modules and information technology products. Panel proceedings are underway in one dispute, while a panel is yet to be constituted in the other.

 

The minister said that the details of all nine disputes are available in the public domain. He added that India has consistently defended the challenged measures as being consistent with its rights and obligations under WTO rules.