WTO rules against India’s tariffs on ICT products
The World Trade Organization (WTO) dispute settlement panel ruled on Monday that India’s tariffs on mobile phones and electronic components violate its commitment under the Information Technology (IT) Act under the multilateral trade body.
The World Trade Organization (WTO) dispute settlement panel ruled on Monday that India’s tariffs on mobile phones and electronic components violate its commitment under the Information Technology (IT) Act under the multilateral trade body. The panel recommended that India bring such measures into conformity with its obligations under the General Agreement on Tariffs and Trade 1994. The panel confirmed that India could not justify the tariffs and could not limit its zero-duty commitment to certain products.
The EU, Japan, and Taiwan had all challenged India’s imposition of tariffs on electronic products in 2019, which exceeded the maximum rate. The EU, in a press statement, claimed that up to €600m ($654.66m) of its exports were directly impacted by India’s tariffs.
The ruling pressures India to withdraw the tariffs, but there is a possibility of filing an appeal. Indian commerce ministry official already stated that India would contest the decision, which could leave the case unresolved given that the WTO’s appeals bench is not functioning.
About author
DW Team
The GIP Digital Watch Observatory team, consisting of over 30 digital policy experts from around the world, excels in the fields of research and analysis on digital policy issues. The team is backed by the creative prowess of Creative Lab Diplo and the technical expertise of the Diplo tech team.