The World Trade Organisation’s (WTO) dispute settlement body has given time till October-end to India and Taiwan to resolve their dispute regarding tariffs on some IT products including telephone handsets on a joint request.
The decision came in the meeting of the dispute settlement body (DSB) on July 26. The DSB meeting was called on Taiwan and India’s joint request on July 15 to call a meeting on July 26 to give more time for settlement of the dispute.
In September 2019 Taiwan had requested consultations with India regarding the tariff treatment that India accords to certain information and communications technology goods which it said are against WTO rules. After Taiwan’s filing, other countries like the US, Singapore, Canada and the European Union joined the dispute. In June 2020 a dispute settlement panel was set up. It gave its report in April 2023 where an adverse ruling came against India.
The dispute centred around duties by India on telephone handsets or mobile phones. India has stated that these ICT products are part of WTO’s Information Technology Products (ITA-2) agreement, and New Delhi is not part of this pact. India is a part of ITA-1, signed in 1997, which did not have any obligation to eliminate customs duties on these products. The ruling of the DSB, however, asked India to reduce the tariffs.
After the adverse order against India, there was a 60-day window available for appeal. As per WTO dispute settlement rules If no appeal is filed then the DSB adopts the order and the country against whom the ruling has been passed has to implement it.
During that 60-day time-window, the parties in dispute can also agree to settle among themselves which was done. In May last year bilateral consultations began and the deadline for the resolution has been extended thrice since.
