New Delhi appoints law firm, says enough scientific proof available
Even as India mulls over dragging the US to the World Trade Organization (WTO) over the visa fee issue, the US has asked for the setting up of a panel regarding its complaint about India?s import restrictions on US poultry and other products. In February 2007, India banned imports of poultry products from the US to prevent any outbreak of avian influenza.
The US demand on setting up of a panel was made on June 13 during the consultation process under the dispute settlement mechanism of the WTO.
A senior commerce ministry official said, ?India had an expansive round of consultations and the US has asked for a panel.?
Consultations are the first step in the WTO dispute settlement process and parties are encouraged to agree to a solution at this stage.
If the matter is not resolved through consultations, the aggrieved party can ask for the establishment of a WTO dispute settlement panel.
?The next meet of the dispute settlement body (DSB) is on June 25, where the board will decide on the panel. Under the WTO process, if the DSB decides to set up the panel, the same will be set up in the next 10-15 days,? the official said.
India is gearing up to face this challenge and has already appointed lawyers to fight the case. ?India has appointed Luthra & Luthra law firm and we are ready to fight the case as we have all scientific evidence. However, we must keep in mind that India has a regime that is entirely WTO-compliant and we have not excluded the US from exporting things to India,? the official added.
It was in March 2012 that the US started to re-enter India?s market for poultry, meat and eggs, saying the ban intended to stop the spread of bird flu was not justified. On March 6, the US dragged India to the WTO.
Commerce secretary Rahul Khullar had then said: ?We will have consultations (with the US). Department of animal husbandry will explain them why we have imposed the ban.?
The US has been arguing that India has not provided scientific evidence in line with international standards on avian-influenza control. US trade representative Ron Kirk also said that India banning US poultry was clearly a case of ?disguising? trade restrictions by invoking unjustified animal health concerns.
On the other hand, India sought consultations with the US over increasing the countervailing duties to 286% on certain types of steel pipes from India to offset government subsidies. On this issue, the US commerce department had said that it had found that Indian companies were selling circular welded carbon-quality steel pipes in the US at 48.43% below fair market value. The duties require importers to post bonds or cash deposits based on the preliminary rates until a final decision on anti-dumping duties is made later this year.
Also, the US set preliminary anti-dumping duties on this kind of pipes from other countries as well ? 27.96% for Vietnam, 5.59% for Oman and 3.29% to 11.71% for the UAE.
US companies ? Allied Tube and Conduit, JMC Steel Group, Wheatland Tube and United States Steel ? petitioned the government last year for import relief.
?Understanding this, India sought consultations with the US and again the US behaved in a highly uncooperative manner,? the commerce ministry official said, adding that ?they have a strong case and will soon decide on the panel.
It was back in the 1990?s, when both the countries were involved in a similar imbroglio relating to the US ?Super 301? legislation. However, the matter was resolved through talks.
