EU too drags India to WTO on import curbs

LONDON, July 18: The European Union (EU) today joined the United States, Australia and New Zealand in referring the controversial issue of ...

LONDON, July 18: The European Union (EU) today joined the United States, Australia and New Zealand in referring the controversial issue of relaxing Indian Quantitative Restrictions (QR) on imports to the Dispute Settlement Body (DSB) of the World Trade Organisation (WTO).

"Following breakdown of multilateral consultations in the WTO Balance of Payments (BoP) committee, the EU today presented a formal request for consultations with India under GATT article XXII," a EU statement released in Brussels said.

The matter has been taken to the DSB after multilateral talks between India and developed nations at Geneva

on June 30 and July 1 ended in a stalemate with New Delhi insisting that quantitative import restrictions were absolutely necessary to maintain the country’s BoP position.

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"The EU regrets that the BoP committee failed to reach a consensus (at Geneva talks). It hopes that consultations will help find an agreement between India and its main trading partners on phasing out import restrictions without the establishment of the panel," the statement said.

Under the WTO agreement, any matter referred to the DSB has to be settled in 60 reference days failing which it would be referred to a WTO panel, whose ruling would be binding on India.

The EU’s statments indicate that it is in no mood to compromise, despite commerce Minister Dr B B Ramaiah saying most EU countries were sympathetic towards India.

Ramaiah had told PTI in New Delhi yesterday that India was "not alarmed" by the developed countries decision to move the DSB and expressed the hope that the issue would be settled amicably. The DSB consultations are likely to be held in New Delhi.