India, Taiwan get time to resolve ICT dispute

The World Trade Organization (WTO) has given time till April 26, 2024, to India and Taiwan to settle a dispute regarding New Delhi's import duties on certain information and technology products, in a breather for manufacturers of mobiles and components in India.

The two had earlier been given time September 19 and then December 18, 2023 to resolve the dispute. At a meeting of the Dispute Settlement Body (DSB), the WTO granted the two additional time to consider the adoption of the panel ruling, which had, on April 17, said that the import duties imposed by India on certain information and technology products violate global trading norms under the Information Technology Agreement, based on disputes filed by the EU, Japan and Taiwan against these duties.

"They asked for further delay in consideration of the panel reports until April 26, 2024 in order to help facilitate resolution of the disputes and it was agreed," said a Geneva-based official.


If the talks fail, Taiwan could adopt WTO panel filings and India could take the case to the Appellate Body of WTO, which hasn't been functional for nearly two years due to the US blocking the appointment of judges. India has appealed against the ruling in its dispute with Japan and the EU.

The dispute was filed in 2019 when the three members had challenged the import duty of 7.5%-later increased to 15%-levied by India in 2017. India further raised the duty to 20%. The duties were to boost local manufacturing.

New Delhi has also rejected the EU's offer to resolve the issue through a Multi-Party Interim Appeal Arbitration Arrangement, which is an alternative system to resolve WTO disputes. Last week, India appealed against the WTO ruling which favoured the EU. The EU has expressed disappointment over India's rejection of interim arbitration to resolve the dispute.