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Source– The post is based on the article “India is well within its right to ensure quality” published in the “mint” on 8th April 2023.
Syllabus: GS3- Economy
Relevance– Issue related to trade
News– several WTO members objected to India issuing quality control orders(QCO) for products of mass consumption, such as machinery safety equipment, pressure cookers, toys and air conditioners, to curb a Chinese import surge and boost exports.
Is the quality control order compliant with WTO provisions?
QCOs are first applied in the domestic market and only then are they imposed on imports. So, India has rights to bring QCOs.
western countries impose quality norms on our products. So, India is duty-bound to retaliate by imposing QCOs on their products. According to WTO rules, members should use similar standards for domestic as well
QCOs cannot be challenged at WTO if they are imposed on grounds of health, safety, environment and deceptive trade practice, or national security. The Centre argued that cheap quality products from other countries pose a health risk for children in India.
What is the rationale behind issuing quality control orders by the Indian government?
QCOs are increasingly being used by the government to curb the dumping of cheap products from China amid the widening trade deficit. It is nearly 40% of the total deficit. India has a total deficit of $87.5 billion.
India lags in terms of international standards. It must ramp up its focus on quality to make the best of free trade agreements and take advantage of the China-plus-one strategy adopted by the West.
