Govt rules out WTO dispute over IT curbs
New Delhi: The Centre anticipates objections from World Trade Organization (WTO) members over the recently imposed import restriction on IT hardware such as computers and electronic items but believes the move won’t lead to the opening of a formal dispute at the international trade body, a government official said. Trade experts believe India, which imports over $8 billion of the listed products, could be dragged to the WTO for the restriction. Fears of a pushback from countries also come against the backdrop of an ongoing WTO dispute over Indian import duty on information communications technology (ICT) products with half-a-dozen countries.
“Countries can always say that they are facing the pinch from the current move but we will argue that the move is in the interest of the country and within boundaries set by WTO. These are short- term measures that countries from time to time take," the official said. “Most of the time such steps are taken by developed countries in terms of non-tariff barriers.
It could be some standards or countervailing duties or some measures or industry input," the official said. Global Trade Research Initiative (GTRI) said that unlike in the case of mobile phones and ICT items India could not have raised the import duty due to the Information Technology Agreement signed in 1997. Therefore the only option to check import was to require firms to obtain government licence before importing.
“India is sure to be dragged into disputes at the WTO. But as the WTO disputes body is dysfunctional, India may take the national security plea," agreed GTRI co-founder Ajay Srivastava. Queries sent to the commerce ministry remained unanswered at press time.
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