U.S. tariffs: ‘India must raise dispute at WTO’

U.S. tariffs: ‘India must raise dispute at WTO’

Context

India should drag the United States into the World Trade Organisation’s (WTO) dispute mechanism against the latter’s move to hike import duties on steel and aluminium, as the decision will impact exports and is not in compliance with the global trade norms, experts said

Expert view

The decision of the U.S. is protectionist in nature and it would not only impact India’s export of these goods to America but also affect global trade

Where are disputes settled in WTO?

Dispute Settlement Body (DSB)

• The General Council convenes as the Dispute Settlement Body (DSB) to deal with disputes between WTO members
• Such disputes may arise with respect to any agreement contained in the Final Act of the Uruguay Round that is subject to the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU)
• The DSB has authority to establish dispute settlement panels, refer matters to arbitration, adopt panel, Appellate Body and arbitration reports, maintain surveillance over the implementation of recommendations and rulings contained in such reports, and authorize suspension of concessions in the event of non-compliance with those recommendations and rulings

Appellate body

There is one appellate body to file appeals against decisions of DSB

• The Appellate Body was established in 1995 under Article 17 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU)
• It is a standing body of seven persons that hears appeals from reports issued by panels in disputes brought by WTO Members
• The Appellate Body can uphold, modify or reverse the legal findings and conclusions of a panel, and Appellate Body Reports, once adopted by the Dispute Settlement Body (DSB), must be accepted by the parties to the dispute
• The Appellate Body has its seat in Geneva, Switzerland

Additional info: Complete procedure of dispute settlement in WTO