India & the World Trade Organization |
Quantitative Restrictions (QRs) Article XI of the General Agreement on Tariffs and Trade 1994 provides that no prohibitions or restrictions (other than duties i.e., tariffs) whether made through quotas, import or export licenses or other measures shall be maintained by any member of the WTO. However, under provisions of Article XVIII-B of GATT, we maintain quantitative restrictions on import of items in respect of 2400 tariff lines in the HS (Harmonised System) codes. In May 1997, India presented a plan for elimination of these restrictions on imports over a period of 9 years, which was considered at consultations held in the Committee on Balance of Payments Restrictions in June-July 1997. While the plan generally received the support of developing countries, the developed countries felt that the phase-out period was too long and that the number of items proposed for phase-out during the later years of the plan were too many. Although India agreed to reduce the phase-out period to 7 years, even this was not acceptable to the developed countries. Subsequently, the US, EC, Canada, Australia, New Zealand and Switzerland initiated dispute settlement proceedings against India and sought consultations under Article XXII of GATT. In the consultations that followed, India reached agreements with all countries except the US and entered into a phase-out period of 6 years starting from 1997. The US filed a dispute against India. A panel was constituted on 18th November, 1997 to examine the US allegations that the continued maintenance of QRs on imports by India was inconsistent with India’s obligations under the WTO agreement. The interim report of the panel has since been received and is being examined. |