India moves WTO against US
India has moved the World Trade Organisation (WTO) against the US as it has not yet complied with the rulings of the WTO pertaining to imposition of high import duty on certain Indian steel products.
In December 2014, the WTO’s appellate body pronounced a ruling against the act of US which is imposing high import duty on certain Indian steel products. It had ruled that the imposition of import duty on steel products was inconsistent with various provisions of the Agreement on Subsidies and Countervailing Measures.
The Agreement on Subsidies and Countervailing Measures (the SCM Agreement) – addresses two separate but closely related matters-The multilateral disciplines on the use of subsidies and the conditions under which Members may apply countervailing measures.
India has sought consultation with the US for compliance of the WTO’s rulings. If the US refuses to comply then India has planned to approach the WTO’s compliance panel.
In order to comply with the WTO rulings on countervailing duties on imports of hot-rolled carbon steel products from India, the US needs to amend its domestic norms.
Earlier, the US had moved the arbitration panel of the WTO against India as it complained that India had failed to remove trade restrictions on American poultry.
The WTO is an inter-governmental organization for governments to negotiate global trade agreements and progressively liberalizing trade. The WTO operates a system of trade rules that apply to all its members. The WTO is also a place for Member governments to settle their trade disputes. Its located in Geneva, Switzerland. It was established on 1 January 1995 and its official languages are English, French and Spanish.
Countervailing duties are those duties that are imposed by a country to counter the negative impact of import subsidies to protect domestic producers.
Month: Current Affairs - June, 2017