Context:

• The World Trade Organisation has set up two new dispute panels against India on July 29, accepting requests made by Taiwan and Japan.
• The separate panels come after India refused a request from the WTO to combine all grievances to be addressed by a single panel.
• All three allege that tariffs imposed by India on imported information and communications technology (ICT) products, infringe on WTO norms.

Countries Arguments:

• They are against import duties imposed by India on electronic goods such as telephones for cellular networks; machines for reception, conversion and transmission or regeneration of voice, images or other data; and parts of telephone sets.
• Duties on these products infringe on WTO norms under which India has committed to zero percent bound tariffs.

Indian arguments:

• India has denied the allegations.
• It pointed out that the ICT products in question are part of the WTO’s Information Technology Products (ITA-2) agreement, while New Delhi is only part of the ITA-1 pact signed in 1997.
• India is committed to ITA-1 and abiding by it over the years.

Issue and Future:

• The issue may take a year to a year-and-a-half to resolve even after the panels are formed; and the COVID-19 pandemic may further slow the process.
• If the panel rules against India, the country can appeal in the WTO’s appellate body.
• This body has not functioned since December 2019.

About WTO:

• Intergovernmental organisation which regulates the international trade
• Officially commenced on 1st Jan 1995 under the Marrakesh Agreement
• Signed by 123 nations in 1994
• WTO had replaced GATT (General agreement on tariffs and trade)
• It deals with agriculture, textiles and clothing, banking, telecommunications, government purchases, industrial standards and product safety, food sanitation regulations, intellectual property and much more.

FUNCTIONS OF WTO

• Administering WTO trade agreements
• Forum for trade negotiations
• Handling trade disputes
• Monitoring national trade policies Technical assistance and training for developing countries
• Cooperation with other international organizations

PRINCIPLES OF WTO

The basic principles of the WTO (According to the WTO):

• Trade Without Discrimination:
  • Most Favoured Nation (MFN): treating other people equally
  • National treatment: Treating foreigners and locals equally
• Freer trade: gradually, through negotiation
• Predictability: through binding and transparency
• Promoting fair competition
• Encouraging development and economic reform.

Reference: https://www.moneycontrol.com/news/business/wto-accepts-taiwan-japans-request-sets-up-two-new-dispute-panels-in-ict-case-against-india-5619891.html

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