WTO says India unfairly blocking imports of egg, poultry from US

In a setback to India’s argument and a move that may now allow the imports of products such as eggs and other poultry products from the US, the Appellate Body of World Trade Organisation (WTO) on Thursday ruled against India’s ban on these products.

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India will have 12-18 months to implement this ruling, after which the US can begin exports of poultry products to India.

India ordered a ban on these imports as a measure to protect against avian influenza (bird flu).

“I welcome this win, which will help us eliminate unjustified trade barriers, so US farmers can sell high-quality American agricultural products to customers around the world,” US trade representative Michael Froman said in a statement.

“This decision affirms the importance of basing agricultural trade requirements on sound science,” US secretary of agriculture Tom Vilsack said. “This is a major win for US agriculture and, in particular, the poultry industry,” the statement added.

“The WTO panel and appellate body overwhelmingly agreed with US’ claims that, for example, India’s ban is not based on international standards or a risk assessment. India’s measures are more trade restrictive than necessary because it is safe to import US products meeting international standards,” the statement added.

Source - HIndustan Times

WTO punches holes in India's import framework, calls it complex

India is streamlining its Customs procedures and implementing trade facilitation, but the country's import structure still remains complex, WTO has said.

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India, it said, took to self-assessment for Customs procedures in 2011 to facilitate trade, and around 97.6 per cent of imports were processed through the risk management system.

According to the sixth Trade Policy Review of India, prepared by WTO, the country has taken several initiatives to modernise its intellectual property regime (IPR) administration and continues its efforts to enforce IPRs.

Acknowledging India's support for the multilateral trading system, it said the country has historically been party to a few regional trade pacts.

"However, despite India's reservations, regionalism has increasingly become an element of its overall trade policy objective of enhanced market access for its exports. This is evidenced by the 15 agreements currently in force and its involvement in the negotiation of other agreements," it added.

It said that the simple average MFN (most favoured nation) tariff rate rose to 13% in 2014-15 from 12% in 2010-11.

"This reflects a rise in tariffs in agriculture, particularly for cereals and preparations thereof, oilseeds and fats, and sugars and confectionery," it added.

It also took note of India's WTO-bound tariff levels "much higher than the applied rates", especially for many agricultural products.

It said these gaps allow the government to modify tariff rates in response to domestic and international market conditions, but at the same time, they reduce tariff predictability.

India, the report added, continues to apply import quotas on marble and similar stones and sandalwood.

"State trading applies to certain agricultural goods, urea, and certain petroleum oils as a policy tool to ensure, inter alia, a fair return to farmers, food security, supply of fertiliser to farmers, and functioning of the domestic price support system," it said.

The report also mentioned India's recognition that structural issues act as a barrier to higher growth."Despite the implementation of these measures, India's import regime remains complex, especially its licensing and permit system, and its tariff structure, which has multiple exemptions, with rates varying according to product, user or specific export promotion programme," the Geneva-based multi-lateral organisation said.

Source - DNA money