INDIAN UPDATES
India's agricultural policies raise concerns at the WTO (11 Sep)
Several WTO members have questioned Indian agricultural policies in respect of export restrictions on rice and wheat as well as electricity and income subsidies offered to farmers. The export restrictions were initially implemented in light of domestic food security concerns. Members including the US, Australia and Japan have sought India's plan for easing of export restrictions on wheat and rice and replacing the same with export duties. India has also been asked to provide the eligibility criteria for grant of income support to farmers under national-level and state-level schemes. Additionally, Japan has raised concerns regarding the electricity subsides given to farmers in India, which have allegedly increased disproportionally to the prices.
India suspends concessions and other obligations in response to EU's decision to continue safeguard measures on imports of Steel products (18 Sep)
On 18th September 2024, India notified the WTO Council for Trade in Goods of its decision to suspend concessions and obligations under GATT 1994 and Article 8.2 of the Agreement on Safeguards. The decision was in retaliation to the EU's notification proposing continuation of safeguard measures on imports of 26 categories of Indian steel products, till June 2026. The measures were originally imposed on 18th July 2018 and were first extended till June 2024. India's withdrawal of concessions shall be effected by increasing tariffs on imports of selected European origin products. India has informed that it expects duty collection, pursuant to suspension of concessions, equivalent to USD 1.103 billion, which is equal to the loss incurred by India during the years 2018 to 2023, as a result of EU's safeguard measures.
GLOBAL UPDATES
China initiates dispute settlement process against Canada regarding surtax measures on certain products, including Electric Vehicles and Steel and Aluminium products (11 Sep)
On 11th September 2024, China notified the Disputes Settlement Body of its request for consultation, under the Dispute Settlement Undertaking, with Canada. The request was made in respect of surtax measures by Canada on certain Chinese imports, including that of Electric Vehicles and Steel and Aluminium products. Pursuant to implementation of additional measures, Canada has imposed a 100% surtax on Chinese Electric Vehicles and a 25% surtax on imports Steel and Aluminium products from China. According to China, these measures violate Canada's obligations under GATT 1994 with respect to the most favoured nation treatment.
Dispute Panel established to review whether certain tax credits under US Inflation Reduction Act are in consonance with WTO Rules (23 Sep)
China submitted a second request for establishing a panel for the purpose of determining whether certain tax credits granted under the United States Inflation Reduction Act (IRA) are in adherence to WTO Rules. China stated that the US IRA's subsidies favoured goods originating in the US over imports from other countries and hence, were violative of WTO Rules. The US stated that IRA was a step towards protection against climate change and to secure sustainable supply chains for global clean energy. The Dispute Settlement Body agreed to establish the panel.
EU initiates dispute settlement process against Chinese anti-subsidy investigation into imports certain Dairy Products (25 Sep)
The EU requested consultations with China with respect to initiation of anti-subsidy investigation into imports of certain Dairy Products from the EU. The EU claimed that the initiation of investigation was inconsistent with Articles 11.2, 11.3 and 11.9, read with Article 1.1(b), of the Agreement on Subsidies and Countervailing Measures, as the application requesting the initiation did not include sufficient evidence on the existence of a countervailable subsidy, injury or a causal link between the subsidized imports and the alleged injury.
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