EU launches consultation on dispute with India over tariffs on information and communication technology (ICT) goods

This step is taken because India has effectively blocked the final and binding resolution of the dispute under the WTO. India appealed the WTO Panel Report – which was favourable to the EU – to the non-functional WTO Appellate Body, otherwise known as 'appealing into the void'. India did not agree to an ad hoc appeal arbitration or to a mutually agreed solution in this case. 

The EU’s Enforcement Regulation enables the EU to enforce international obligations, to which fellow WTO members have agreed, when a trade dispute is blocked despite the EU's efforts to follow dispute settlement procedures in good faith. 

Next steps

Concerned entities have until 10 February 2025 to give information and their views on this consultation.

The European Commission will take the received input into account when considering possible proportionate commercial policy measures in response to India’s WTO-inconsistent duties, should a mutually satisfactory solution between the EU and India not be found.

At the same time, the EU continues to look for a mutually agreed solution to this dispute, including continuing to invite India to join the Multi-Party Interim Appeal Arrangement (MPIA) or agree to an ad hoc appeal arbitration.

Background

India has since 2014 gradually introduced customs duties of up to 20% on products such as mobile phones, mobile phone components and accessories, line telephone handsets, base stations, static converters or electric wires and cables. The EU considered that these duties were in direct breach of WTO rules since India is obliged under its WTO commitments to apply a zero-duty rate to such products. 

The EU initiated this WTO dispute settlement case in 2019. The panel issued its final report to all WTO Members on 17 April 2023, confirming that India’s customs duties are in breach of WTO commitments. India appealed the Panel Report on 8 December 2023.

For more information

Information gathering

EU wins WTO case on India's tariffs on ICT products

WTO Panel Report

Full case details and WTO documents

Dispute settlement in a nutshell

EU-India trade relations