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Business News/ Politics / Policy/  India seeks WTO compliance panel in row with US over trade curbs
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India seeks WTO compliance panel in row with US over trade curbs

The Indian request for the compliance panel will come up for consideration at the dispute settlement body meeting on 19 April

India said it had objected to the US request for suspending concessions or other obligations under the covered agreements. Photo: AFPPremium
India said it had objected to the US request for suspending concessions or other obligations under the covered agreements. Photo: AFP

Geneva: India has raised a trade dispute against its own compliance measures at the World Trade Organization (WTO) after the US refused to accept the steps adopted by New Delhi for terminating the health-related curbs imposed on American chicken and chicken products due to bird flu.

Washington also refused to drop the arbitration proceedings, which it had launched last year on grounds that New Delhi failed to comply with WTO rulings and recommendations. It sought an approval from WTO to impose trade retaliatory measures to the tune of $450 million on Indian goods because of the alleged failure to implement the rulings and recommendations.

To counter the US stand in the AI (avian influenza) dispute, India invoked what are called Article 21.5 compliance proceedings under the dispute settlement understanding (DSU) against its own measures. The Indian request for the compliance panel will come up for consideration at the dispute settlement body (DSB) meeting on 19 April. In its five-page request for establishing the compliance panel which was circulated to members on 12 April, India provided a detailed account of how it implemented the steps before the “reasonable period" ended on 19 April 2016.

India said it requested the US to enter into what is called a sequencing agreement, which is a standard practice among WTO members to ensure that in the event of a disagreement between the parties with respect to compliance with DSB’s rulings and recommendations, recourse under Article 21.5 of the DSU should be pursued as the first option."

But the US has not agreed to New Delhi’s request to enter into a sequencing agreement. Moreover, India said it understands “the US disagrees that the revised Avian Influenza measures are consistent with the WTO covered agreements and that India has brought itself into conformity with its WTO obligations".

Instead of seeking a compliance panel to determine whether New Delhi has fully implemented the rulings and recommendations in the AI row, the US requested an authorization from WTO for imposing $450 million in retaliatory measures for India allegedly failing to comply with the trade body’s rulings and recommendations.

India said it had objected to the US request for suspending concessions or other obligations under the covered agreements. “Till date, despite India’s compliance, the US has not agreed to suspend the arbitration proceedings under Article 22.6 of DSU. In India’s opinion, if there is a disagreement between the parties with respect to “the consistency with a covered agreement of measures taken to comply with the recommendations and rulings", the proper course of action is first to have recourse to Article 21.5 of DSU," India maintained.

Ironically, the US adopted a similar position in other WTO disputes such as the ‘Tuna dispute’ with Mexico. The US had maintained in the Tuna dispute that “DSB cannot grant authorization to suspend concessions in any amount where the member concerned has come into compliance".

India said it agrees with the US position in the Tuna dispute stating that “in this case, where India considers that it has brought itself into full compliance and where the US disagrees, the issue of compliance must be decided following the procedures of Article 21.5 of DSU".

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Published: 18 Apr 2017, 12:57 AM IST
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