EU wins WTO case over India’s tariffs on information and communications technology products

Today, the World Trade Organization (WTO) decided to support the EU in the landmark case regarding India’s tariffs on information and communication technology (ICT) products. In its decision, the WTO panel agreed with the EU’s demands against India and stated that India’s tariffs of up to 20% on some ICT products, such as mobile phones, were inconsistent with the country’s obligations to the WTO, and therefore counterproductive. The volume of imports of this technology from the EU, compared with The parties India tk, deep and 600 million euros ron. As important as this issue is in itself, the real impact on European companies exporting to India and from other countries is enormous.

The WTO panel confirmed that India’s tariffs cannot be cut based on the reasons given by India in this case. India cannot use the Information Technology Trade Agreement (ITA) to circumvent the restrictions set out in the WTO documents, nor can it limit its zero tariff obligation to products existing at the time of the agreement and exclude new technology products that fall under the same category. customs goods. The panel also confirmed that there was no error in India’s customs balance rate, even when updating items in the customs nomenclature, and refused to examine India sufficiently to correct its customs balance. Such changes must be negotiated between WTO members.

Context

Since 2014, India has gradually introduced tariffs of up to 20% on products such as mobile phones, mobile components and services, home telephone sets with cordless handsets, base stations, static electricity or power cables and wires. The EU considers the tariffs to be in violation of WTO rules, or India is obligated to apply zero tariffs on the product in accordance with its WTO obligations.

In 2019, the EU is pedaling towards a WTO dispute. The WTO Panel presented its summary originally prepared by the WTO on 17 April 2023.

In 2019, following an EU initiative, Japan and Taiwan submitted parallel events (DS584/DS588). Their reality concerns the same problem (tasks on ICT products) and the same product. I hope the WTO will decide on this issue today.

He gave information

Originally a WTO panel

Detailed information on incidents and WTO documents

short dispute

Trade relations between the EU and India

Roderick Glisson

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