Ottawa: Canada has taken official steps by requesting consultations with the World Trade Organization (WTO) to dispute US import duties on steel and aluminum products from Canada, according to a statement issued by the trade organization.

The request was circulated to WTO members Thursday, said the statement.

Canada argued that US measures, which ceased its exemption and increased duties, contravene US obligations under GATT 1994, Xinhua news agency reported.

Mary Ng, minister of export promotion, international trade and economic development, said Wednesday that Canada was seeking formal consultations with the US regarding tariffs on steel and aluminum.

“Canada is deeply disappointed that the US has chosen to reimpose these unjustified tariffs that hurt workers and businesses on both sides of the border,” Ng said in the statement. “These unilateral tariffs violate the United States’ obligations under both the Canada-United States-Mexico Agreement (CUSMA) and the WTO Agreement.”

Francois-Philippe Champagne, minister of innovation, science and industry, made a statement Thursday that Canadian steel and aluminum form the basis of North America’s critical infrastructure and manufacturing base, while supporting vital US industries, including defense, shipbuilding and automotive.

The industry minister said he directed Industry Canada to prioritise funding of projects that use predominantly Canadian steel and aluminum.

Canada announced Wednesday reciprocal tariffs on US steel and aluminum imports worth 29.8 billion Canadian dollars ($20.7 billion). This trade move came in response to US President Donald Trump’s 25 per cent tariffs on all steel and aluminum imports coming into effect on the same day.

February 10, US President Donald Trump signed proclamations to raise tariffs on aluminum from 10 per cent to 25 per cent, aligning them with the existing tariff rate for steel.

He also decided to eliminate duty-free quotas, exemptions, and exclusions for steel and aluminum tariffs. These measures were set to take effect March 12.

March 11, Trump announced a plan to double tariffs on Canadian steel and aluminum imports to 50 per cent in response to tariffs on electricity exports from the Canadian province of Ontario. But the plan was reversed later that day after Ontario dropped the electricity export tariffs affecting three US states.

IANS

Beijing: China Tuesday retaliated US President Donald Trump’s imposition of 2nd round of ten per cent tariffs on its export by slapping an additional 15 per cent tariffs on American goods and initiated legal action against Washington in WTO while leaving the door open for talks to address each other’s concerns.

China will impose additional tariffs on some products imported from the United States, effective from March 10, the China’s Customs Tariff Commission said Tuesday.

An additional 15-per cent tariff will be imposed on imported chicken, wheat, corn and cotton originating from the US, it said in a statement.

Sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables and dairy products will be subject to an additional 10-per cent tariff.

Additionally, China decided on Tuesday to add 10 US firms to the country’s unreliable entity list and take corresponding measures against them. They include a number of companies linked to defence and security besides AI, aviation, IT and “dual-use” items that carry both civilian and military applications.

Also, China has initiated legal action against the US under the World Trade Organisation (WTO) dispute settlement mechanism regarding the latter’s latest tariff increase on Chinese products, the Ministry of Commerce said Tuesday.

China’s retaliatory actions followed after the US imposition of an additional 10-per cent tariff on products imported from China, effective from March 4.

The unilateral imposition of tariffs by the US undermines the multilateral trading system, increases the burden on American businesses and consumers, and erodes the foundation of China-US economic and trade cooperation, the commission said.

Trump’s announcement of a second round of 10 per cent tariffs on Chinese exports to the US coincides with the opening of China’s annual parliament session.

The twin sessions consisting of the Parliament, the National People’s Congress and the advisory council, the China People’s Political Consultative Conference (CPPCC) were opened on Tuesday.

While NPC began with the customary press conference by its media spokesperson, the CPPCC held its opening session.

The NPC will begin its session on Wednesday, during which Premier Li Qiang will submit the work report, which will include the annual budget.

Trump’s tariffs loomed large on the parliament session as the US was one of the biggest importers of Chinese goods.

Chinese exports to the US constitute nearly 15 per cent of China’s global trade.

In 2023, the trade between the US and China amounted to USD 575 billion. This included USD 427.2 billion of China’s exports to the US and USD 147.8 billion of American exports to China.

Trump said his ten per cent new tariffs on goods from China will come into force on Tuesday, the day the NPC opens its session.

Already, Chinese goods were hit by 10 per cent tariffs by Trump after he began his second tenure, demanding China to address US concerns over fentanyl, a potent opioid drug blamed for widespread drug addiction in the US.

During his election campaign, he threatened to slap 60 per cent tariffs.

While retaliating, China, however, urged the US to work with it to resolve trade disputes through equal-footed consultation.

Commenting on Trump’s tariffs in his press briefing, Lou Qinjian, spokesperson of the NPC, said the US unilateral tariff move violated the WTO and disrupted the security and stability of global industrial and supply chains.

China stands ready to work with the US to address each other’s concerns through dialogue and consultation on the basis of mutual respect, equality, reciprocity and mutual benefit, but “will never accept any act of pressuring or threatening,” Lou said.

“We will firmly defend our national sovereignty, security and development interests,” he said.

PTI

New Delhi: Finance Minister Nirmala Sitharaman Thursday said India needs to ramp up its bilateral relations for trade and investment, as the world is witnessing a churn, and bilateralism seems to be the new catalyst tool.

Speaking at BS Manthan, the Finance Minister said these are very interesting yet challenging times and the government is making all efforts to make India move up the ladder and be an engine of global growth.

“Bilateralism is now taking the top of the agenda… It is for us to ramp up our bilateral relations with many countries, not just for trade, not just for investment, but also for strategic relations. So multilateralism, sort of, out, I’m still saying with a qualifying word ‘sort of out’, but bilateralism is very much the only catalytic tool that you can use,” she said.

Observing that multilateral institutions are increasingly fading away, she said, every attempt to revive them and energize them is not having the desired result.

“So, where you have to address issues which affect more than your own country. You have no more forums left which can effectively deliver… multilateral institutions and their contributions probably are fading away, at least shortly, till an attempt is made to revive them with that kind of energy… It’s not going to happen in the next few years,” she said.

Asserting that global trade is undergoing a complete reset, she said, “the terms and references with which all of us played trade, with some kind of an anchor in the World Trade Organization are no longer available.”

There is no Most Favoured Nation (MFN) concept, she said, adding, that every country wants to be treated special, and every country wants to be sure that the special treatment that they get is not by default.
“So if the WTO is getting weakened or multilateral institutions are not being effective… bilateral arrangements are going to be the order of the day in terms of trade,” she said.

Sensing the movement toward a new world, India has initiated bilateral trade talks with many nations including the UK and is planning a bilateral trade agreement with the US.

India is also in discussion with the 27-nation grouping — the European Union, for a free trade pact.
In the new global order, she said, India needs to ramp up its bilateral relations for trade, and investment and boost strategic relations.
With its technology and talent pool, the country can act as the engine of global growth in a new world order, she said.

“I think these are very interesting yet challenging times… India has to make a meaningful contribution to the global reset, as much as continuously make all the efforts to make India move up the ladder, both in terms of per capita income, and also in terms of a business destination, where talent can move, investors can move for the global good… we can be the engine of the global growth,” she said.

Talking about reforms, Sitharaman said, it is something which the government will continue to do in various areas including debt management and maintaining fiscal prudence.

“Reform cannot be just an agenda only of the union government, it has to be taken up seriously by every state government… I would want competition among states, a healthy one, to say my economy is far better than the others,” she said.

PTI

New Delhi: India and Chinese Taipei have asked the WTO’s dispute settlement body not to adopt any ruling against New Delhi’s import duties on certain information and technology products till July 26 as both sides are engaged in resolving the matter, an official said.

The issue came up during a meeting of the dispute settlement body (DSB) in Geneva April 26.

In the meeting, the two countries asked DSB to delay consideration of a dispute panel’s reports until July 26, 2024 in order to help facilitate resolution of the disputes, the Geneva-based official said, adding that the body agreed to that.

Earlier also, DSB had agreed to three previous requests from India and Chinese Taipei to delay consideration of the reports.

As per rules of the WTO, the panel’s ruling will have to be adopted by DSB for implementation within 60 days of the release of the order. However, countries can mutually request DSB for delay in adoption of the ruling.

In its report, a dispute panel of WTO April 17, 2023 said import duties imposed by India on certain information and technology products violate global trading norms.

The ruling followed a case filed by the EU, Japan and Taiwan against these duties in WTO.

In May 2019, Chinese Taipei had filed a case against India in the WTO over the import duties imposed on certain electronic goods, including telephones for cellular networks; machines for reception, conversion and transmission or regeneration of voice, images or other data; and parts of telephone sets.

India has stated that these ICT products are part of WTO’s Information Technology Products (ITA-2) agreement, and New Delhi is not part of this pact. India is a part of ITA-1, signed in 1997, which did not have any obligation to eliminate customs duties on these products.

Besides formulating norms for global exports and imports, the Geneva-based 164-member multilateral body adjudicates trade disputes among the member countries.

According to WTO rules, a member country can file a case in WTO if they feel that a particular trade measure is against the norms of WTO.

Bilateral consultation is the first step to resolving a dispute. If both sides are not able to resolve the matter through consultation, either of them can approach the establishment of a dispute settlement panel.

The panel’s ruling or report can be challenged at WTO’s appellate body.

Interestingly, the appellate body is not functioning because of differences among member countries to appoint its members. Several disputes are already pending with this body. The US has been blocking the appointment of the members.

PTI

Abu Dhabi: The talks at the WTO’s ministerial conference ended with no decision on key issues such as finding a permanent solution to public food stockpile and on curbing fisheries subsidies, but the members agreed to further extend the moratorium on imposing import duties on e-commerce trade for two more years.

The 13th ministerial conference (MC13) also managed to get at least five more outcomes such as new disciplines on domestic regulation for services, formal joining of Comoros and Timor-Leste as members of the WTO, and least developing countries continuing to get the benefits of LDC even three years after graduation.

Commerce and Industry Minister Piyush Goyal said it is a “good outcome and we are completely satisfied”.

He said that a lot of issues continue to make progress in terms of discussions.

“Progress was made on several contentious issues which have not been closed for many years but forward movement is always a sign of possible closure going forward,” he told reporters here.

India successfully pushed the food security issue and the country did not yield any ground on protecting the interest of poor farmers and fishermen as well as on other issues.

Despite the four days of hectic parleys getting extended for a day, the 166-member World Trade Organisation (WTO) was not able to reach a common ground for resolving the food security issue, a demand raised prominently by India as it was crucial for the livelihood of 800 million people across the globe, and curbing subsidies that leads to overfishing and over capacity.

The Cairns group, comprising countries like Australia and Brazil, has claimed that public stockholding is market-distorting and that there should be no export restrictions. Food-importing countries like Japan and Singapore are pushing for predictability in farm policies.

On the other hand, the US wants market access for its agri commodities, and the EU wants a cut in subsidies.

New Delhi was pressing for a permanent solution to the issue of public stock holding (PSH) of grains for food security programmes and has asked developed countries engaged in distant water fishing to stop providing any kind of subsidies for 25 years.

Experts said that there should not be any comparison between the fishermen of rich nations and those of developing countries. In one of the developed countries, the fisheries subsidies is over USD 80,000 per fisherman, while in India it is about USD 38 per fisherman.

India and South Africa also blocked a proposal led by China on investment facilitation stating that the agenda is out of the WTO mandate. India has also blocked a proposal of the European Union on industrial policy.

PSH programme is a policy tool under which the government procures crops like rice and wheat from farmers at a minimum support price (MSP), stores and distributes foodgrains to the poor under various welfare schemes.

As part of a permanent solution, India has asked for measures like amendments in the formula to calculate the food subsidy cap.

Developing nations including India were asking for updating the external reference prices used to calculate market price support in public stockholding, which are currently based on 1986-88 reference prices.

Lack of decision on public stockholding does not impact government procurement of foodgrains and public distribution system as India has had a permanent peace clause in perpetuity since 2014.

Under the peace clause, India’s intervention in the food grain markets like procuring certain agri commodities at a minimum support price for livelihood security of farmers and poor cannot be challenged in the dispute settlement system of the WTO.

On another key demand by India on reviving the system of appeal in the dispute settlement system, the ministers decided to speed up the discussions on the issue of appeal and review.

According to a draft ministerial declaration, the discussion by officials on a fully and well-functioning dispute settlement system accessible to all members by 2024 would also focus on all unresolved issues.

On fisheries where India is asking for a moratorium on subsidies for distant water fishing for 25 years by countries like China, Norway, Japan which have large fleets, there has been no agreement as members were not able to converge their views.

Fishing beyond 200 nautical miles from the seashores of a country is termed distant water fishing. Due to no word in the declaration on the issue, India also gets to keep its subsidy to its fishermen.

Another outcome of the conference was related to an agreement on LDC Graduation.

At the meeting, it was decided to keep this concession for LDCs for 3 years.

Though the e-commerce taxation moratorium got extended, the ministers agreed to continue to re-invigorate the work under the Work Programme on Electronic Commerce, taking into account the economic, financial and development needs of developing and least-developed country members.

India also successfully managed to keep non-trade issues out of the agenda.

India and South Africa blocked an attempt to get the China-inspired pact — Investment Promotion for Development — included in the WTO even though it had a backing of more than 120 countries. Another non-trade issue of linking trade to gender has also been successfully opposed.

The declaration also noted that women’s economic empowerment and women’s participation in trade contributes to economic growth and sustainable development.

PTI

New Delhi: India Monday expressed “serious” concerns in a WTO meeting in Abu Dhabi over increase in the use of trade protectionist measures by certain countries in the name of environment protection.

The remarks assume significance as the country has earlier flagged issues over the European Union’s (EU) decision to impose carbon tax (a kind of import tax) on sectors such as steel and fertiliser; and adoption of deforestation regulation by the 27-nation bloc.

Speaking at a session on sustainable development and policy space for industrialisation, Commerce Secretary Sunil Barthwal said developing countries require flexibility in the existing WTO (World Trade Organization) agreements to overcome the constraints faced by them in their industrialisation.

He also expressed concerns on the concerted attempt by the developed countries to club long-standing development issues like policy space for industrial development with new issues of ‘Trade and Industrial policy’.

The CBAM (Carbon Border Adjustment Mechanism), or carbon tax, will come into effect from January 1, 2026 for seven carbon-intensive sectors, including steel, cement, fertiliser, aluminium and hydrocarbon products.

The CBAM will translate into a 20-35 per cent tax on select imports into the EU starting January 1, 2026.

India’s 26.6 per cent of exports of iron ore pellets, iron, steel, and aluminium products go to the EU.

These products will be hit by CBAM. India exported these goods worth $7.4 billion in 2023 to the EU.

Barhthwal “expressed serious concerns regarding the increasing use of trade protectionist unilateral measures, which are sought to be justified in the guise of environmental protection”.

India’s exports of products like coffee, leather hides, and paperboard worth $1.3 billion annually to the European Union are likely to be impacted due to the deforestation regulation adopted by the EU in May 2023.

In another session on ‘Trade and Inclusion’, the secretary, who is in Abu Dhabi for the 13th ministerial conference of the WTO, cautioned members that mixing non-trade topics with WTO rules can lead to greater trade fragmentation.

“Bringing issues like gender and MSMEs in the realm of WTO discussions was not practical because these issues were being discussed in other relevant international organisations already,” he said.

He added that issues like inclusion can be better addressed through targeted national measure as they did not fall in the domain of international trade relations.

“In the name of non-trade issues, several developed countries were already considering adopting trade distortive subsidies and had erected non-trade barriers.

Expressing concerns, he said such unilateralism and its negative spillover effect on the trade interests of developing countries.

India has taken a series of measures for greater inclusion of MSMEs and women, especially through use of Digital Public Infrastructure.

PTI

Chandigarh/Lucknow: Farmers took out tractor rallies at several places in Punjab, Haryana and western Uttar Pradesh and burnt effigies, demanding the agriculture sector be taken out of the WTO agreement.

In Uttar Pradesh, the rallies led to disruption in traffic at many places and farmers also burnt effigies representing the World Trade Organisation (WTO), which is holding its 13th ministerial conference, a meeting of its highest decision-making body, in the UAE.

On the call of Samyukta Kisan Morcha (SKM), an umbrella body of several farm unions that spearheaded the 2020-21 farmers’ stir, protesters parked their tractors along the highways at many places in Punjab and Haryana.

Effigies representing the WTO were also burnt at Khanauri and Shambhu points on Punjab’s border with Haryana where thousands of farmers have been camping after their march to Delhi, led by the Samyukta Kisan Morcha (Non-Political) and Kisan Mazdoor Morcha (KMM), was halted by security forces.

Farmer leaders claimed the WTO’s objective was to end farm subsidies and if India followed it, that would be “suicidal”.

In western Uttar Pradesh, protests by farmers with tractors and by burning effigies representing WTO following a call given by the Bharatiya Kisan Union (BKU), disrupted vehicular traffic, which could resume only in the afternoon.

BKU national spokesperson Rakesh Tikait alleged the Union government was ignoring the genuine demands of farmers and condemned the “atrocities” against farmers camping on the Punjab-Haryana border points to press the Centre for various demands, including a legal guarantee of minimum support price (MSP) for crops.

In UP’s Muzaffarnagar district, a tractor march by farmers on a highway disrupted traffic in many places. They also blocked the left lane of the Delhi-Dehradun national highway.

The protesters parked their tractors at Bhuraheri under the Purkaji police station area, Bhangela under the Khatauli police station area, Mansoorpur intersection and Rampur Tiraha under the Chhapar police station area.

BKU workers and farmers parked their tractors on National Highway 58 in Meerut causing jam on the road. An effigy representing the WTO was also burnt there. During this, BKU district president Anurag Chaudhary had a heated exchange of words with officials.

The BKU workers held a meeting under the chairmanship of Madanpal Yadav during which the office bearers called for marching to Delhi March 14.

In Punjab’s Hoshiarpur, farmers parked their tractors at several locations including the Jalandhar-Jammu National Highway. Led by Doaba Kisan Committee’s state president Jangveer Singh Chauhan, farmers also parked their tractors on a road at Bijli Ghar Chowk in Tanda.

Addressing a gathering, Chauhan criticised World Trade Organization (WTO) policies, calling those “anti-farmers”.

Members of several other farm outfits such as Bharti Kisan Union (Rajewal), BKU (Qadian), BKU (Ekta Ugrahan) also held demonstrations and parked their tractors on Hoshiarpur-Phagwara Road, Nasrala-Taragarh Road, Dosarka-Fatehpur Road, Bullowal-Allowal Road and Bhunga-Hariana Road.

The protesters also demanded legal guarantees for MSP, debt waiver, implementation of Swaminathan Commission recommendations and pension for farmers.

In Amritsar, farmers parked their vehicles along the highways in Ajnala, Jandiala Guru, Rayya and Beas. In Ludhiana, farmers owing allegiance to the SKM, parked their tractors along the highway on Ludhiana-Chandigarh road to register their protest against the WTO.

In Haryana’s Hisar, farmers held protests at 50 locations by parking their tractors along the state and national highways.

All India Kisan Sabha (AIKS) state vice president Shamsher Singh Nambardar said the demonstrations were held at places including Surewala Chowk, Mayyar Toll, Chaudhariwas, Bagla Mor, Badopatti and Bas Toll.

He claimed that the government was not giving MSP on all crops because of WTO policies.

PTI

New Delhi: India strongly opposes efforts of certain countries like China to push a proposal on investment facilitation at the WTO, an official said Tuesday as the agenda falls outside the mandate of the global trade body.

The issue will figure in the Ministerial Conference (MC) of the World Trade Organization (WTO) in Abu Dhabi. The four-day meet will start from February 26.

MC is the highest decision-making body of the WTO.

A China-led group of 130 countries are pushing for the Investment Facilitation for Development (IFD) proposal.

The group wants to bring the proposal through annexure-4 of the WTO under which the proposal would be binding on only the signatory members and not on those who are opposed to it.

“We are against that also,” the official said, adding that India has opposed it as that would dilute the multilateral nature of the WTO.

The official also said that if these countries want to negotiate the subject, they should do it outside the formal structure of the WTO.

India’s concern emanates from the fact that proponents of IFD should not be attempting to bring a “non-mandated, non-multilateral issue” to the formal process in the WTO. Such an attempt will be in violation of the WTO framework and fundamental rule of consensus-based decision-making.

There has not been any ministerial mandate for negotiations on investment-related matters, the official said.

While all decisions at the WTO happens through consensus, it also allows member countries to form a group and have agreements among themselves.

Such pacts comes under annexure 4 of the WTO which deals with plurilateral agreements.

The IFD was first mooted in 2017 by China and other countries who depend heavily on Chinese investments, and countries with sovereign wealth funds are party to that pact.

Among major countries, the US is also sitting out of the agreement. Sri Lanka and Pakistan are also not part of it.

PTI

New Delhi: India has appealed against a ruling of the World Trade Organization’s (WTO) trade dispute settlement panel in a case filed by the European Union against New Delhi’s import duties on nine information and technology products.

India’s move came after both regions were not able to arrive at a mutually agreeable solution (MAS).

“India and the EU have negotiated to arrive at a MAS for the past seven months, but the EU has now filed for adoption of panel report December 7 and therefore, India has appealed against it December 8 in the WTO,” Additional Secretary in the commerce ministry Peeyush Kumar told reporters here.

As part of the MAS, the EU was seeking customs duty concessions on certain goods, which was not acceptable to India as it violates WTO rules.

These concessions can only be given in a free trade agreement, Kumar said.

In September, the two regions had asked WTO’s dispute settlement body not to adopt a ruling against New Delhi’s import duties on certain ICT products like mobile phones and components, base stations, integrated circuits and optical instruments till December 18, as both sides were engaged in bilateral talks to resolve the matter.

The panel in April had ruled that import duties imposed by India on certain information and technology (ICT) products violate global trading norms.

“India notified its decision to appeal the panel report in the case brought by the European Union (EU) in ‘India Tariff Treatment on Certain Goods’.  The appeal was circulated to WTO members December 14,” the WTO has said in a statement.

In May, India filed another appeal in a similar dispute case initiated by Japan regarding the tariff treatment that India accords to certain goods in the ICT sector.

According to WTO rules, a WTO member or members can file a case in the Geneva-based multilateral body if they feel that a particular trade measure is against the norms of the WTO.

The WTO’s dispute settlement body (DSB) is one of the important arms. Besides monitoring global exports and import-related rules, it adjudicates trade disputes between the member countries.

Bilateral consultation is the first step to resolve a dispute. If both sides are not able to resolve the matter through consultation, either of them can approach for establishment of a dispute settlement panel.

The panel’s ruling or report can be challenged at the WTO’s appellate body.

Interestingly, the appellate body is not functioning because of differences among member countries in appointing its members. Several disputes are already pending with this body, which is not functional, as the US has been blocking the appointment of the members.

“India hereby notifies DSB of its decision to appeal to the appellate body regarding certain issues of law covered in the panel report and certain legal interpretations developed by the panel in the dispute ‘India Tariff Treatment on Certain Goods in the ICT sector’,” the communication submitted by India to the WTO said.

India has sought review by the appellate body of the “errors of law and legal interpretation” by the panel in its report and findings.

The EU, on April 2, 2019, challenged the introduction of import duties by India on a wide range of ICT products, including mobile phones and components, base stations, integrated circuits and optical instruments.

The EU had claimed that the measures appear to be inconsistent with certain provisions of the WTO. Later, Chinese Taipei and Japan also joined the dispute.

Imports of these nine goods from the EU stood at $340.15 million in 2022.

With Chinese Taipei, Kumar said, talks are on for a MAS.

PTI

New Delhi: India, South Africa and Egypt have introduced a paper regarding ongoing discussions on the reforms of the World Trade Organisation’s (WTO) dispute settlement body, an official said.

The paper – Reflections on the Reform of the WTO Dispute Settlement System – was introduced in a meeting of the body in Geneva.

In the meeting, “India took the floor to introduce the joint communication from Egypt, India and South Africa,” the Geneva-based official said, without disclosing details of the paper.

It was circulated among the WTO members November 24.

The introduction of the paper assumes significance as India is batting for starting formal negotiations by WTO members to reform the dispute settlement body, as the present informal deliberations are creating hindrances for several nations to participate in the talks.

WTO’s dispute settlement body (DSB) is one of the important arms of the 164-member Geneva-based body. Besides monitoring global exports and import-related rules, it adjudicates trade disputes between the member countries.

There are two main ways to settle a dispute once a complaint is filed in the WTO – the countries find a mutually agreed solution, particularly during the phase of bilateral consultations; and through adjudication which includes ruling by a panel and if not satisfied, challenging that ruling at the appellate body.

The smooth functioning of the WTO’s dispute settlement mechanism hit a roadblock when the US blocked appointments of members in the appellate body (AB). Though the AB stopped functioning December 10, 2019, the panels are still working.

Since December 2019, over 20 appeals have been filed in the AB.

PTI

New Delhi: Brazil has offered to share its ethanol production technology with India as part of efforts to resolve a sugar-related dispute between the two countries at WTO (World Trade Organisation), an official said.

The South American nation in its proposal has stated that the ethanol production technology would help India to use surplus sugar in making ethanol.

The offer can help India utilise its excess sugar output and ease competition for Brazil in the international sugar market.

Brazil is the largest producer of sugarcane and ethanol in the world. It is a leader in the technology used for ethanol production. It is also the largest exporter of sugar in the world. India is the world’s second-largest producer.

The proposal could benefit India as it aims to gradually increase the percentage of blending of ethanol in petroleum auto fuels and reduce dependence on imported crude oil.

“Brazil has a flex technology. They do ethanol blending. That technology is good for India too. Brazil has argued that India can use its surplus sugar for ethanol production and through that India can deal with its fuel issue also and that surplus sugar would not enter into the global markets and not impact world prices,” the official said.

“They have given a proposal. Discussions are happening,” the official added.

Ethanol is used to blend with oil to power vehicles. Use of ethanol, extracted from sugarcane as well as broken rice and other agri produce, will help the world’s third-largest oil consumer and importing country cut its reliance on overseas shipments. Also, it cuts carbon emissions.

India is dependent on imports for meeting 85 per cent of its oil needs. There is a target of 20 per cent ethanol blending with petrol by 2025.

In 2019, Brazil, Australia, and Guatemala dragged India into the WTO’s dispute settlement mechanism alleging that New Delhi’s support measures like Fair and Remunerative Price (FRP) to sugarcane farmers are inconsistent with global trade rules.

A WTO dispute settlement panel December 14, 2021, ruled that India’s support measures for the sugar sector are inconsistent with the global trade norms.

In January 2022, India appealed against the panel’s ruling at the WTO’s appellate body, which is the final authority to pass rulings against such disputes. The appellate body, however, is not functioning due to differences among the countries on appointments of members of the body.

Several disputes are already pending with the appellate body. The US has been blocking the appointment of the members.

The bilateral trade between India and Brazil increased to $16.6 billion in 2022-23 as against $12.2 billion in 2021-22. Trade gap is in favour of India.

According to reports, Brazil is a leader in ethanol-blended gasoline and has achieved 25 per cent blending levels.

Flex-fuel vehicles can run on either gasoline or ethanol now have cornered a big market in Brazil, accounting for over 80 per cent of new light vehicle sales in 2022.

PTI

New Delhi: With the World Tourism Organisation (WTO) declaring Gujarat’s Dhordo as the “best tourism village”, Prime Minister Narendra Modi said Friday that he is “absolutely thrilled” at the development as the honour not only showcases the potential of Indian tourism but also the dedication of the people of Kutch in particular.

Posting pictures of his visits to the village in 2009 and 2015, he asked people to share their memories too saying this will inspire others to visit the place.

“Absolutely thrilled to see Dhordo in Kutch being celebrated for its rich cultural heritage and natural beauty. This honour not only showcases the potential of Indian tourism but also the dedication of the people of Kutch in particular. May Dhordo continue to shine and attract visitors from around the world,” Modi said on X.

Earlier, the tourism ministry announced that Dhordo has been honoured as the “Best Tourism Village” by the WTO, a United Nations agency working to promote tourism for sustainable development.

This accolade reflects the village’s exemplary contribution to sustainable and responsible tourism, the ministry said.

PTI

New Delhi: India has said that the export ban on rice is a regulation rather than a restriction and is crucial for securing the food security of 1.4 billion people, according to an official.

This was stated by India in response to concerns raised by a group of countries including the US during a meeting of the WTO’s Committee on Agriculture in Geneva September 27.

The Geneva-based official said that in the meeting, India reiterated its commitment to ensure food security in importing countries by granting exemptions to those in need upon their governments’ requests.

The Indian government has already allowed exports of non-basmati rice to Bhutan (79,000 tonnes), UAE (75,000 tonnes), Mauritius (14,000 tonnes), and Singapore (50,000 tonnes) through the National Cooperative Exports Ltd (NCEL).

July 20 this year, India banned exports of non-basmati white rice to boost domestic supply and keep retail prices under check during the upcoming festive season.

“The Government of India has the commitment that in case of food insecure, vulnerable countries and neighbouring countries request, it will provide with the required quantity of rice or wheat,” the government official said.

India has also argued that, in order to prevent private players from manipulating market conditions, advance notifications were not provided in the WTO.

Furthermore, these measures are temporary and are regularly reviewed to allow necessary adjustments based on domestic demand and supply situations.

A group of member countries of the World Trade Organisation (WTO) including the US has raised concerns about banning the export of non-basmati white rice by India, saying the decision may impact import-dependent nations, the Geneva-based trade official said.

The US has urged India to lift this export ban with immediate effect.

These countries have argued that such measures had a detrimental impact on nations that are heavily reliant on imports of these agri commodities, particularly during times of crisis, the official said.

The ongoing war between Russia and Ukraine, and this year’s El Nino climate conditions are among the factors that have disrupted the foodgrain supply chain.

More than a dozen questions were raised by Japan, Australia, Brazil, Canada, the European Union, New Zealand, Switzerland, Thailand, the UK, and the US.

“They expressed concerns about the impact of India’s export ban on the global food market, highlighting its significance as the world’s largest rice exporter, accounting for over 40 per cent of global exports,” the official added.

PTI

New Delhi: India and the US have agreed to set up a joint monitoring mechanism to enable domestic exports of at least 3.36 lakh tonnes of certain steel and aluminium products in a year to America without paying extra duties, an official said Tuesday.

Indian exports of these products were attracting additional duties in the US as Washington, in 2018, imposed a 25 per cent import duty on steel products and 10 per cent on certain aluminium products on grounds of national security.

In retaliation, India in June 2019 imposed additional customs duties on 28 American products.

The US is allowing these imports from India without paying the extra 25 per cent and 10 per cent duties in return for New Delhi’s decision to remove retaliatory duties on eight American products like apple and walnut.

Additional Secretary of the commerce ministry Peeyush Kumar said that officials will meet twice a year to review the arrangements.

“We will have a biennial meeting…We have requested steel and mines ministries to designate an officer from their side who will be talking to stakeholders and exporters that applications are being properly processed,” Kumar told reporters here.

If Indian exporters would face any bottleneck or problem, it would be conveyed to the commerce ministry and will be taken up with the US during the meetings of the joint monitoring mechanism (JMM), he added.

As a goodwill gesture, the US started approving applications for the import of these items from January this year because the two countries were talking about mutually ending the trade disputes at the World Trade Organisation (WTO).

“On the exclusion part, applications of minimum 3.36 lakh tonnes of steel and aluminium per year will be permitted…This is the minimum quantity, they can approve more also… The US allowed imports from some tested players,” he said.

During the visit of Prime Minister Narendra Modi in June, the two countries decided to remove trade irritants and as part of that, both sides agreed to end six trade disputes at the WTO.

They have mutually resolved those seven disputes and India has decided to remove additional duties on eight US products, including chickpeas, lentils and apples, which were imposed in 2019.

The US, on its part, has agreed to provide greater market access to certain Indian steel and aluminium products, a development which would help increase outbound shipments of these goods. The US has agreed to grant market access to steel and aluminium products under the exclusion process of Section 232 of the Trade Expansion Act 1962.

This market access will restore opportunities for Indian steel and aluminium exporters, which were restricted since June 14, 2018, because of the US 232 measure under which additional duties were levied on steel and aluminium products respectively.

The commerce ministry had earlier said that the move would provide significant impetus to raise India’s steel and aluminium exports by about 35 per cent.

These applications will be made under the exclusion process of Section 232 by the importers on behalf of the exporters.

The US had imposed these duties using Section 232 of an act that permits the president to restrict imports.

The additional tariffs had impacted $ 1.21 billion worth of India’s exports of steel and aluminium to the US in 2018. The duty burden on exports due to additional US tariffs amounted to $ 241 million.

The US had settled a similar dispute with Canada and Mexico at the end of 2019. While steel and aluminium imports from these countries got exemption from the extra tariffs, called Section 232 tariff, the agreement provided for aggressive monitoring and a mechanism to prevent surges in imports of steel and aluminium.

Further talking about removal of an additional 20 per cent duty on US apples and walnuts, the additional secretary said that the move would not impact local players.

The government has sufficient policy space to support growers if there is any implication of the move.

Kumar said that only the additional duty has been removed and the basic duty of 50 per cent will continue besides the minimum import on apples.

Import of apples from the US decreased sharply from $ 145 million (127,908 tonnes) in 2018-19 to only $ 5.27 million (4,486 tonnes) in 2022-23.

It indicates that the market share of the US apples was taken by other countries due to imposition of additional retaliatory duty on American apples, as the imports from countries other than the US increased from $ 160 million in 2018-19 to $ 290 million in 2022-23.

The US’s import share in the import market segment was taken by countries like Turkey, Chile, New Zealand and Italy.

Imports of walnuts dipped to 3,806 tonnes in 2022 from 8,663 tonnes in 2019.

Meanwhile, the opposition Congress Tuesday criticised the government’s decision to reduce import duty on apples.

The centre has also reduced the import duty on the Washington apple, which will also directly affect the horticulturalists of the State, thereby causing losses to them, the Congress said.

National Conference leader Omar Abdullah Monday appealed to the Centre to reconsider its decision to remove the additional duty on apples, walnuts and almonds imported from the US, saying the government should try to make its own people happy instead of pleasing foreigners.

PTI

Gandhinagar: The India-Indonesia Economic and Financial Dialogue launched Sunday will focus on enhancing bilateral trade and investment, financial services, and infrastructure development, among others.

Announcing the launch of the Dialogue, Finance Minister Nirmala Sitharaman said it can play an instrumental role in reaching a common understanding on issues and taking forward the global agenda from the perspective of the emerging market and developing economies.

This dialogue will facilitate better cooperation between India and Southeast Asia while contributing to global economic and financial stability, she said on the sideline of the third meeting of G20 Finance Ministers and Central Bank Governors (FMCBG) being held here.

The two-day FMCBG meeting co-chaired by Nirmala Sitharaman and Reserve Bank Governor Shaktikanta Das begins here Monday.

Both the nations will be discussing issues of common interest that are mutually beneficial in enhancing relationships, she said.

“The areas of cooperation will include bilateral investment, financial services, and infrastructure development, among others. For instance, India has developed expertise in digital public infrastructure. It can provide time-tested solutions for convenient and affordable digital payments which can assist Indonesia in achieving its financial inclusion goals,” she said.

Both India and Indonesia are fast-growing economies and are similar in many ways. Both are active members of multilateral organisations such as G20, WTO, and East Asia Summit, she said, adding, India has taken over the G20 presidency from Indonesia and there are several legacy issues which we are continuing to take forward during our presidency.

Since the adoption of India’s Look East policy in 1991 and the Act East Policy in the subsequent years, there has been a rapid development in bilateral relations between India and Indonesia in both commercial and cultural fields.

Indonesia has emerged as India’s largest trading partner in the ASEAN region. The trade has increased eightfold since 2005 and it has touched $ 38 billion US dollars in the last year.

Speaking about the launch of Dialogue, Indonesia Finance Minister Sri Mulyani Indrawati said, both countries have a lot of potential on trade.

The dialogue would help address the issue of development, not only for both countries but also globally, especially on the issue of climate change, global public health, and also how we can strengthen the investment cooperation between the two countries, she said.

Both countries would discuss the possibility of cooperation in digital technology, payment systems under central banks, and using more local currency.

She thanked Finance Minister Nirmala Sitharman for India’s strong support of Indonesia’s own agenda related to the membership of Indonesia on the Financial Action Task Force.

PTI

Washington/New Delhi: India and the US have agreed to end six key trade disputes at the World Trade Organisation (WTO) while New Delhi will also remove retaliatory customs duties on certain American products such as almonds, walnuts, and apples.

The six disputes include three initiated by India and as many by the US.

Announcing this, United States Trade Representative (USTR) Katherine Tai in a statement said that these tariff cuts will restore and expand market opportunities for US agricultural producers and manufacturers.

A joint statement issued after the meeting of Prime Minister Narendra Modi and US President joe Biden said that both the countries have taken steps towards deepening bilateral cooperation to strengthen their economic relationship, including trade ties.

“The leaders welcomed the resolution of six outstanding WTO disputes between the two countries through mutually agreed solutions,” it said.

The USTR said that the two countries “have agreed to terminate six outstanding disputes” at the WTO.

These include countervailing measures on certain hot-rolled carbon steel flat products from India, certain measures relating to solar cells and modules, measures relating to the renewable energy sector, export-related measures, certain measures on steel and aluminium products, and additional duties on some products from the US.

According to trade experts, both countries can resolve the disputes on mutually agreed terms and later inform the Geneva-based WTO about the same.

Commenting on this, commerce and industry minister Piyush Goyal said that this decision is a “big victory” and will be mutually beneficial for both countries.

He said, its a “package deal” and now there are no pending India-US disputes at WTO.

In 2018, the US imposed 25 per cent and 10 per cent import duties on certain steel and aluminium products, respectively, on grounds of national security. In retaliation, India in June 2019 imposed customs duties 28 American products, including chickpeas, lentils, almonds, walnuts, apples, boric acid, and diagnostic reagents.

The US had filed a complaint in the WTO about India’s support measures to its export sector under different schemes. In 2019, a WTO dispute panel ruled that India’s export measures are inconsistent with global trade norms.

The US is the largest trading partner of India. In 2022-23, the bilateral goods trade increased to $ 128.8 billion as against $ 119.5 billion in 2021-22.

According to WTO rules, a member country can file a case in the Geneva-based multilateral body if they feel that a particular trade measure is against the norms of the world body. Bilateral consultation is the first step to resolving a dispute. If both sides are not able to resolve the matter through consultation, either of them can approach the establishment of a dispute settlement panel.

The panel’s ruling or report can be challenged by WTO’s appellate body.

Interestingly, the appellate body is not functioning because of differences among member countries to appoint its members. Several disputes are already pending with this body. The US has been blocking the appointment of the members.

PTI

Washington: India and the US have agreed to end six trade disputes at the World Trade Organisation while New Delhi will also remove retaliatory customs duties on 28 American products such as almonds, walnuts, and apples, according to an official statement.

This comes amid Prime Minister Narendra Modi’s State Visit to the US at the invitation of President Joe Biden and First Lady Jill Biden.

In 2018, the US imposed 25 per cent and 10 per cent import duties on certain steel and aluminium products respectively on grounds of national security. In retaliation, India in June 2019 imposed customs duties on 28 American products, including chickpeas, lentils, almonds, walnuts, apples, boric acid, and diagnostic reagents.

“United States Trade Representative Katherine Tai today announced that the United States and the Republic of India have agreed to terminate six outstanding disputes at the World Trade Organization. India also agreed to remove retaliatory tariffs which it had imposed in response to the Section 232 national security measures on steel and aluminium,” Tai said on Thursday.

It added that these tariff cuts will restore and expand market opportunities for US agricultural producers and manufacturers.

“Today’s agreement represents the culmination of intensified bilateral engagement over the last two years, including through the US-India Trade Policy Forum, to deepen our economic and trade ties,” Tai said.

“As a result of our work, US agricultural producers and manufacturers will now enjoy renewed access to a critical global market and we will strengthen our trade relationship with one of our closest partners.  I look forward to continuing to work with my counterpart, (India’s Commerce and Industry) Minister (Piyush) Goyal, as we identify additional ways to bring our people and our economies together,” she added.

The six disputes include three initiated by India and as many by the US.

These include countervailing measures on certain hot-rolled carbon steel flat products from India, certain measures relating to solar cells and modules, measures relating to the renewable energy sector, export-related measures, certain measures on steel and aluminium products, and additional duties on some products from the US.

According to trade experts, both countries can resolve the disputes on mutually agreed terms and later inform the Geneva-based WTO about the same.

The US had filed a complaint in the WTO about India’s support measures to its export sector under different schemes. In 2019, a WTO dispute panel ruled that India’s export measures are inconsistent with global trade norms.

The US is the largest trading partner of India. In 2022-23, the bilateral goods trade increased to USD 128.8 billion as against USD 119.5 billion in 2021-22.

According to WTO rules, a member country can file a case in the Geneva-based multilateral body if they feel that a particular trade measure is against the norms of the world body. Bilateral consultation is the first step to resolving a dispute. If both sides are not able to resolve the matter through consultation, either of them can approach the establishment of a dispute settlement panel.

The panel’s ruling or report can be challenged by WTO’s appellate body.

Interestingly, the appellate body is not functioning because of differences among member countries to appoint its members. Several disputes are already pending with this body. The US has been blocking the appointment of the members.

PTI

New Delhi: India has appealed against a ruling of the World Trade Organization’s (WTO) trade dispute settlement panel which stated that the country’s import duties on certain information and technology products are inconsistent with the global trade norms.

“India appeals, and requests the Appellate Body to reverse, modify, or declare moot and of no legal effect, the findings, conclusions, rulings and recommendations of the panel,” WTO has said.

It said India has sought a review by the Appellate Body of the “errors of law” and legal interpretation by the panel in its report.

The dispute panel of WTO April 17 said in its report that import duties imposed by India on certain information and technology products violate global trading norms.

The ruling followed a dispute filed by the European Union, Japan and Taiwan against these duties in WTO.

The appeal was filed by India in the WTO’s appellate body, which is the final authority on such trade disputes.

The EU April 2, 2019 had challenged the introduction of import duties by India on a wide range of ICT products, for instance, mobile phones and components, base stations, integrated circuits and optical instruments.

The EU had claimed that the measures appear to be inconsistent with certain provisions of WTO. Later, Chinese Taipei and Japan also joined the dispute.

According to WTO rules, a WTO member or members can file a case in the Geneva-based multilateral body if they feel that a particular trade measure is against the norms of WTO.

Bilateral consultation is the first step to resolve a dispute. If both sides are not able to resolve the matter through consultation, either of them can approach for establishment of a dispute settlement panel.

The panel’s ruling or report can be challenged at WTO’s appellate body. Interestingly, the appellate body is not functioning because of differences among member countries to appoint its members. Several disputes are already pending with this body. The US has been blocking the appointment of the members.

“Given the ongoing lack of agreement among WTO members regarding the filling of Appellate Body vacancies, there is no Appellate Body Division available at the current time to deal with the appeals,” WTO has said in a statement.

Even if the body, which is the final arbiter on such trade disputes, starts working from now, it would take over an year to take up India’s appeal.

According to trade experts, if the appellate body also passes a ruling against India’s support measures, New Delhi will have to abide by that and make appropriate changes in the way it provides those measures.

Last year, India had appealed against a ruling of WTO’s trade dispute settlement panel which said that the country’s domestic support measures for sugar and sugarcane are inconsistent with global trade norms.

PTI

New Delhi: Over 100 delegates from G20 countries and international organisations will deliberate on WTO reforms, integrating MSMEs in global trade, and efficient logistics during the second Trade and Investment Working Group (TIWG) meeting in Bengaluru during May 23-25.

India assumed the presidency of G20 for one year from December 1, 2022, to November 31, 2023. The G20 Summit will be held in New Delhi September 9-10.

G20 meetings are being held across different cities, covering all 28 states and eight Union Territories of India.

The meeting in Bengaluru will be inaugurated by Minister of State for Commerce and Industry Anupriya Patel, the commerce ministry said in statement on Friday.

“During this three-day meeting, over 100 delegates from G20 member countries, invitee countries, regional groupings and international organizations will deliberate on reforming the multilateral trading system, integrating MSMEs in global trade, resilient global value chains (GVCs), making trade work for growth and prosperity, and efficient logistics for trade,” it said.

Themes, such as technology reshaping trade and the role of technology in driving inclusive growth will be deliberated upon.

The subject of WTO (World Trade Organization) reform, one of the priorities pursued by the Indian G20 presidency will be taken up for discussion in a technical session May 24.

“The emphasis of these discussions will be on reaffirming WTO’s foundational principles, as embodied in the Marrakesh Agreement and its multilateral trade agreements, thus recognizing the need for open, inclusive and transparent functioning of WTO,” it said.

Presentations will also be made on the deliverables related to digitalization of paper documents, such as bills of landing and certificate of origin that are critical for cross-border trade, and on developing an action plan to create meta information portal for MSMEs, it said.

The first TIWG meeting was held in Mumbai in March.

“The aim, under India’s G20 presidency, is to build a shared understanding of the challenges faced in accelerating global trade and investment, and leveraging existing opportunities to make growth inclusive and transparent,” it added.

The Group of Twenty (G20) is an intergovernmental forum comprising 19 countries and the European Union. Argentina, Australia, Brazil, Canada, China, France, Germany, India, Japan, Russia, Saudi Arabia, the US and UK are among other members.

G20 members represent around 85 per cent of the global GDP, over 75 per cent of the global trade, and about two-thirds of the world population.

It was founded in 1999 after the Asian financial crisis as a forum for the finance ministers and central bank governors to discuss global economic and financial issues.

It was upgraded to the level of Heads of State/Government in the wake of the global economic and financial crisis of 2007, and, in 2009, was designated as the premier forum for international economic cooperation.

The G20 Summit is held annually, under the leadership of a rotating presidency.

PTI

New Delhi: The Customs duties of India are “very” often misconstrued to be high on most items but in reality, they are low, Commerce and Industry Minister Piyush Goyal has said.

He said that the duties on technological items that are helping the Indian economy grow are very low.

Actual applied rates of tariffs are lower than the agreed bound rates at WTO (World Trade Organization), Goyal told reporters Tuesday after the 1st India-EU Trade & Technology Council (TTC) meeting in Brussels, Belgium.

Goyal said that the TTC is helpful as it is supplementing the free trade agreement negotiations and the agreement will make India-EU relationship the defining partnership of the century.

“India’s tariffs are very often misconstrued to be very high on most items, raw materials, intermediates but in reality the duties are very low,” he said.

Goyal also said that India is engaging with the EU on Carbon Border Adjustment Mechanism (CBAM) as it is not the EU’s intention to create a barrier to trade but to find a way forward towards sustainability as part of collective efforts.

He stressed that India and the EU are working together to find the right solution to the CBAM issue.

On the trade agreement with the EU, he said that the negotiations are progressing well.

Goyal also held a bilateral meeting with the European Commissioner for Internal Trade, Thierry Breton.

On the suggestion of Breton for exploring engagement in the space sector, Goyal informed that India is amongst the major powers in the space sector and that both sides can have deeper engagements in the sector.

Breton informed that the EU is working on new Digital Services Act to which Goyal said that both sides can collaborate further given India’s status as an IT giant.

On the issue of carbon border adjustment mechanism (CBAM), the minister informed that further study needs to be undertaken as to how this could impact enterprises on both sides, impact on trade and the effect on consumers due to increased price of goods and services.   The commerce ministry in a separate statement said that as part of the first ministerial meeting of India-European Union Trade and Technology Council (TTC), a stakeholders event for working groups 1 and 2 was co-chaired by Goyal, External Affairs Minister S Jaishankar and Rajeev Chandrashekar, Minister of State for Electronics and Information Technology on the Indian side and Margrethe Vestager, Executive Vice President of European Commission, and Theirry Breton, European Commissioner, on the EU side.

The event was attended by 18 stakeholders, from various business sectors and both India and EU presented their views and suggestions.

From the Indian side, there were five stakeholders who represented the digital and technology sector (Working Group 1) while three represented clean and green energy technologies (Working Group 2).

Issues which came up for discussions include digital technologies, innovations; interoperability for cross border merchant payments; re-globalisation; enabling harmonised standards, regulations and policies to enhance digital trade and investment between India and the EU; digital transformation to scale.

The other issues include certifications; engagements on production of green hydrogen; battery systems and recycling; scaling up charging systems for better access; waste and water management, it said.

Goyal, in his address and subsequent interventions, underscored the importance of new digital technologies and their transformations helping to reskill and upskill existing talents.

“The Minister informed that mutual recognition of degrees/courses would enable joint skill development on both sides,” he said.

He also suggested that to have deeper understanding based on mutual sensitivities, working groups need to engage periodically and identify separate tracks for skilling and talent, semiconductor ecosystem to move towards clear and identifiable deliverables.

PTI