WTO to review QRs ruling

The dispute settlement panel meet would consider India and United States comments on the interim ruling in which it had asked both parties to sit together and evolve a consensus on a time frame for New Delhi to remove the import curbs. Ithas, however, specified the time frame should above 15 months.

The sources said India had raised objections to United States leaking the interim report, in its comments on the interim report. It had also argued that South Korea was given seven years time to phase out its import restrictions and while Tunisia three.

The interim ruling has been neither a victory nor a loss for both the disputing nations, sources said. India had maintained restrictions on imports on balance of payment (BoP) considerations to preserve its foreign exchange reserves but agreed to lift it when an International Monetary Fund (IMF) report contested India’s stand and said the BoP position was comfortable. India agreed to remove the curbs over a period of six years but the United States demanded removal in a shorter time frame.The issue of removal of import curbs was dealt by the WTO, which following a stand-off between India and developed countries suggested that the restrictions could be removed over a period of six years. Indiahas reached an understanding with the European Commission, Canada, Switzerland, Australia and New Zealand on the six-year phase out, which the United States has not accepted.The understanding was reached after India agreed to front load items of export interest to these parties. Though India and the United States held bilateral negotiations to resolve the issue, no solution could be reached. The United States finally took the issue to the to the WTO dispute settlement body.

The DSP’s interim ruling asking United States to provide more than 15 months time for implementation is the maximum period given to a country to implement a ruling. In any case, the issue is likely to drag on as either India or the United States could appeal against the ruling to the WTO’s appellate body. If dispute settlement panel meets tomorrow and discusses the issue, a final ruling could come in a month’s time.