(a) the details of the trade disputes filed by India against various countries and those filed against India by various countries since 1995;
(b) whether India has lost to the USA and the European Union at WTO in the cases wherein the foreign auto manufacturers were to sign an agreement on indigenous development of parts and the export obligations; and
(c) if so, the details thereof?
MINISTER OF STATE FOR COMMERCE AND INDUSTRY ( SHRI E.V.K.S. ELANGOVAN)
(a) : Under the World Trade Organisation (WTO) Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU), consultations have been held from time to time with other WTO Members on different trade measures with a view to obtaining mutually agreed resolution of the matter. If the consultations do not resolve the matter to mutual satisfaction, the complaining Member may request the Dispute Settlement Body (DSB) of the WTO to establish a Panel for examination of the claims of the complaining Member. A list of disputes between India and other WTO Members, which went to the Panel/Appellate Body stage since 1995 and till date, in which either India has been the complaining party or the party complained against is enclosed at Annexure-I.
(b) & (c) : Yes Sir. At the request of United States (US) and European Union (EU), a Dispute Settlement Panel was established in the WTO to look into the WTO consistency of India`s policy related to import of Completely Knocked Down (CKD)/Semi Knocked Down (SKD) kits by joint venture car manufacturer companies, which had been announced vide Public Notice No. 60 dated 12th December 1997 and which inter alia required all car manufacturing companies to sign a Memorandum of Understanding (MOU) and undertake trade balancing and indigenisation obligations in return for grant of licences for import of CKD/SKD kits. The Panel in its final findings released on 21st December 2001 had held that the Public Notice 60 and the consequent MOUs, including provisions related to `indigenisation` requirement and trade balancing requirement are inconsistent with the relevant provisions of WTO (Art. III and Art. XI of GATT (1994)). The Panel separately looked into the changes in Indian policy after 1st April 2001 as regards the effect they may have on the `indigenisation and `trade balancing` obligations and found that these measures have not corrected the inconsistency.
India filed a notice for an appeal to the Appellate Body on 31st January 2002. The appeal was mainly related to the legal issue of the Panel having exceeded its terms of reference by ruling on measures introduced after the establishment of the Panel. In view of the announcement of the new Auto policy, that it will be in harmony with the commitments made to the WTO, it was considered appropriate to close this matter and the appeal was withdrawn on 14th March 2002.
The Dispute Settlement Body (DSB) of the WTO had on 5th April 2002 adopted the Panel report in this dispute. India expressed its intention to comply with the above ruling at the DSB meeting on 2 May 2002 within a reasonable period of time of up to 5 September 2002. India has fully complied with the DSB rulings in the dispute within the reasonable period time.
Annexure-I
List of disputes between India and other WTO Members, which went to the Panel/Appellate Body stage since 1995 and till date, in which either India has been the complaining party or
the party complained against
Sl. No. Subject of the Disputes Complainant Against Won/Lost by India
1. India- Quantitative restrictions on imports USA India Lost of agricultural, textile and industrial products.
2. India - Patent protection for pharmaceutical EC India Lost and agricultural chemical products.
3. Turkey - Restrictions on imports of textile India Turkey Won and clothing products
4. India-Patent protection for pharmaceutical USA India Lost and agricultural chemical products
5. USA- Import prohibition of certain shrimp and shrimp products India USA Won
6. USA-Measures affecting imports of Women`s and girl`s wool coats India USA Won
7. USA- Measures affecting imports of woven wool India USA Won shirts and blouses.
8. EC-Anti-Dumping duties on imports of cotton India EC Won type Bed-Linen from India.
9. India- Measures affecting the Auto motive EC India Lost sector - (Auto policy) 10. India- Measures affecting the Automotive USA India Lost sector - (Auto policy) 11. US-Anti-dumping and countervailing measures India US Won on Steel Plates from India 12. US- Continued Dumping and Subsidy Offset Act India and 8 US Won of 2000 (Byrd Amendment) other countries
13. US- Rules of Origin for Textiles and Apparel Products. India US Lost
14 EC-Anti-dumping duties on imports of cotton type India EC Won bed linen from India (Article 21.5 Panel)
15. EC-Conditions for granting of Tariff Preferences India EC Won to Developing countries (EC-GSP).