Details
- Status
- Open
- Opening date
- Deadline
- Department
- Directorate-General for Trade
- Country or region
- India
- Trade topics
- Enforcement and protection
- Trade policy
Target audience
The Commission expects to receive input from entities whose interests are affected by India’s WTO-inconsistent duties on certain ICT goods, as well as from those potentially affected by possible EU commercial policy measures in response.
Why we are consulting
The European Commission is seeking information and views regarding the Union's economic interests in accordance with Article 9 of Regulation (EU) No 654/2014 of 15 May 2014 (‘Enforcement Regulation’). The European Commission will take the received input into account in considering possible necessary and proportionate commercial policy measures in response to India’s WTO-inconsistent duties, should a mutually agreed satisfactory solution between the EU and India not be found. This procedural step does not prejudge any further EU action under the Enforcement Regulation.
Respond to the consultation
Additional information
Since 2014, India has applied import duties in excess of the 0% bound rate in its Schedule of Concessions and Commitments annexed to the GATT 1994 on imports of certain goods in the information and communication technology sector. These goods include cell phones and telephone handsets, wires used for telecommunication, static converters and base stations. The applied duties go up to 20% on imports from the EU.
Consultations with India at the WTO took place on 21 May 2019, but failed to resolve the issue. On 17 February 2020, the EU requested the establishment of a WTO panel. On 17 April 2023, the WTO panel concluded that India’s import duties on the goods at issue are in breach of India’s obligations under the GATT 1994.
Throughout 2023, the Commission and the Indian authorities engaged in bilateral contacts to discuss a possible solution, both on the substantive matter of the dispute and on procedural possibilities to provide for an alternative appeal arbitration, substituting for the non-functioning Appellate Body, however without success.
On 8 December 2023, India submitted an appeal notice to the WTO (i.e. to the non-functioning Appellate Body). India has not agreed to an alternative appeal arbitration in this case. These actions de facto prevent and block the final and binding resolution of the dispute in this case.
The Enforcement Regulation specifically provides for the enforcement of the EU’s WTO rights in such a situation, notably, following the circulation of a WTO panel report upholding, in whole or in part, the claims brought by the EU, if an appeal under Article 17 of the WTO Dispute Settlement Understanding cannot be completed and if the third country has not agreed to interim appeal arbitration under Article 25 of the WTO Dispute Settlement Understanding.
In such cases, the Enforcement Regulation lays down rules and procedures to ensure an effective and timely exercise of the Union's rights to suspend or withdraw concessions or other obligations under international trade agreements, with the intention of responding to breaches by third countries of international trade rules which affect the Union's interests. The ultimate objective of action under the Regulation is to seek a satisfactory solution that restores benefits for the Union's economic operators.
