Context

• Recently, India and Chinese Taipei have asked the WTO's dispute settlement body not to take any decision against New Delhi's import duty on certain information and technology products till July 26 as both the sides are engaged in resolving the matter.

Key points

• The issue came up during the dispute settlement body's meeting in Geneva on April 26.
• Even before this, the DSB had agreed to three previous requests from India and Chinese Taipei for delay in considering the reports.
• As per WTO rules, the panel's decision has to be adopted for implementation by the DSB within 60 days of the issue of the order. However, countries may mutually request the DSB to delay the adoption of the decision.
• A WTO dispute panel said in its report on April 17, 2023 that the import duty imposed by India on certain information and technology products is in violation of global trade norms.
• The decision came after a case was filed by the EU, Japan and Taiwan against these duties in the WTO.
• In May 2019, Chinese Taipei filed a case against India at the WTO over import duties imposed on certain electronic goods, including telephones for cellular networks.

India's stand

• India has said that these ICT products are part of the WTO's Information Technology Products Agreement and New Delhi is not a part of this agreement.
• India is a part of ITA-1 signed in 1997, which had no obligation to eliminate customs duties on these products.

Process of resolving a dispute between countries

• Apart from setting standards for global exports and imports, WTO also settles trade disputes between member countries.
• According to WTO rules, if a member country feels that a particular trade measure is against WTO norms then it can file a case in WTO.
• Bilateral consultation is the first step to resolve a dispute. If both the parties are not able to resolve the matter through consultation, either of them may approach the establishment of a dispute settlement panel.
• The panel's decision or report can be challenged in the WTO's Appellate Body.

Main issues identified by India in the 13th Ministerial Conference of WTO

• It is noteworthy that the thirteenth ministerial conference of the World Trade Organization (WTO) was held in Abu Dhabi under the chairmanship of UAE Foreign Trade Minister Thani Al Zeyoudi.
• In this conference, India changed the focus of WTO and urged it to move beyond merely serving the trade interests of agricultural exporters.
• Along with this, India also appealed to this organization to give priority to addressing fundamental concerns like food security and maintaining livelihoods.
• India argued that public stockholding programs are necessary for developing countries to ensure food security for their populations, especially vulnerable sections of society.
• Existing WTO rules allow developing countries some leeway regarding public stockholding programs.
• However, these provisions are temporary and India wants a permanent solution that acknowledges their development needs.
• India further stressed the need to create a level playing field in international agricultural trade, especially for low-income or resource-poor farmers around the world.
• Along with this, India, as a member of the G-33 countries, also urged the WTO to find a permanent solution to public stockholding.

Important Facts For Exam

WTO

• Established: January 1, 1995 to replace GATT
• Regulates the rules of trade between countries.
• 164 member countries including European Union
• Headquarters: Geneva, Switzerland
• India became a founding member of GATT and WTO in 1947.
• WTO Chief: Ngozi Okonjo-Iweala