India, WTO & Dispute Settlement

Points WTO – Introduction Dispute Settlement Body Recent news - Appellate Body India’s experience at WTO India’s concerns Export Subsidies Agriculture Subsidies Tariffs on Steel and Aluminum GSP (Generalized System of Preferences)

Introduction - Structure GATT to WTO Ministerial Conference HQ – Geneva (Switzerland) The functions of WTO are Administering trade agreements Acting as a forum for trade negotiations Settling trade disputes Reviewing national trade policies

Dispute Settlement A member country files a complaint against another country at DSB Resolve the issue through consultation/mediation A panel is appointed, which will conduct enquire and submit the report Party/parties can approach the Appellate Body DSB may accept/reject the appeals report

Process of Dispute Resolution

Appellate Body – US blocking appointments

India’s Concerns Tariff on Steel and Aluminum Export Subsidy issue

India’s Concerns - Farm Subsidy AoA Traffic Light Approach De minimis Principle/level MPS MPS For 2014 India US Rice 5.45% 77% Wheat Negative 65%

India’s Concerns - Farm Subsidy Why such difference India MSP = ₹ 20000 per tonne @ER of $1=₹ 60.50 the subsidy will be $325 ERP = $262.5 MPS = $62 and converted it will be ₹ 3751 per tonne US It converts the ERP @1986-89 exchange prices i.e. $1=₹ 13.4, the ERP would be ₹ 3517.5 per tonne MPS = around ₹ 16480 per tonne

India’s Concerns - GSP

Question 1 In the context of which of the following do you sometimes find the terms ‘amber box, blue box and green box’ in the news? (2016) (a) WTO affairs (b) SAARC affairs (c) UNFCCC affairs (d) India-EU negotiations on FTA

Question 2 Consider the following statements The Appellate Body under the DSB of WTO will have only 6 judges They are appointed for a tenure of 4 years They are ineligible for re-appointment Choose the right option Only 2 is correct 1 and 2 are correct 2 and 3 are correct 1,2 and 3 are correct

Question 3 Consider the following statements The Agreements of Agriculture of WTO came into effect from 1996, after the first ministerial conference This agreement puts a limit on all the subsidies given by the governments in the agriculture sector Choose the right option Only 1 is correct Only 2 is correct Both are correct Both are false

Descriptive Questions “Has the WTO become the victim of its own success” – discuss the statement in the context of Dispute Resolution process under WTO (250 words) In the present scenario of the global trade WTO is more important than ever – Evaluate (250 words)