New Delhi, June 2: A World Trade Organisation panel has ruled in India's favour in a case against Turkey for imposing quantitative restrictions on imports of 19 categories of textiles. The dispute settlement panel of WTO held that the measures adopted by turkey were inconsistent with the provision of General Agreement on Tariffs and Trade (GATT) and asked Turkey to bring the measure in conformity with its obligation under the WTO. Turkey had imposed the import restrictions on shipments from India after it joined a customs union with the European Union.The three member panel, headed by ambassador Wade Armstrong, has said that Turkey could make its import policy WTO compatible and still be part of a customs union with the European Community. The dispute settlement body (DSB) was set up on India's insistence on April 24, 1996, after both the parties failed to enter into consultations due to disagreement over the participation of European Communities in such consultations.
The panel report has to be adoptedby the DSB within 60 days unless turkey decided to appeal against the ruling. The DSB has also got the right not to adopt the report if there was consensus within the panel. Turkey, unlike its customs union partners in Europe, could not impose any quantitative restrictions on textiles as it did not notify article 3.1 under the multifibre agreement (MFA) after the world trade organisation (WTO) came into force.
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