Japan, backed by the US, has urged India to retract its decision to appeal a World Trade Organization (WTO) ruling, which disapproved of India’s tariff imposition on tech goods, such as mobile phones and electronic components. The appeal comes in light of a ruling that deemed India had violated global trade norms.
The WTO had ruled in favor of Japan, Taiwan, and the EU in April, holding that India’s tariffs had infringed upon the principles of the Information Technology Agreement (ITA). The US joined Japan in arguing that the tariffs imposed by India levy an undue financial burden on foreign companies while also restricting Indian firms’ and consumers’ access to vital high-tech products.
While the US supported Japan’s appeal at a Dispute Settlement Body (DSB) meeting, the EU and Canada encouraged India to resolve the dispute through the Multi-Party Interim Appeal Arbitration Arrangement (MPIA). This alternative system to settle WTO disputes has been rejected by New Delhi, claiming it weakens the multilateral trading system. China has welcomed the panel’s report on this matter.
The DSB, during the Tuesday meeting, agreed to provide additional time until September 19 to consider the adoption of the panel ruling concerning Taiwan’s case. India and Taiwan have stated that the extended timeline would aid in resolving the dispute.
“Japan expressed disappointment with India’s decision to appeal the panel ruling, thereby sending the case into limbo,” commented an official based in Geneva. The ongoing deadlock among WTO members over filling vacancies has left no Appellate Body Division available to address appeals. As a result, all appeals are currently seen as an ‘appeal into the void’.
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