India defends 9 WTO trade disputes, spent ₹2.43 crore on legal fees
Synopsis
Key Takeaways
India is currently defending nine active trade disputes at the World Trade Organisation (WTO), with complainants including Japan, Brazil, Australia, Guatemala, the European Union, and Chinese Taipei, the Lok Sabha was informed on Tuesday, 4 August. The disclosure was made by Minister of State for Commerce and Industry Jitin Prasada in a written reply to parliament.
Key Disputes at a Glance
Japan in May 2019 challenged India's safeguard measures on certain iron and steel products, arguing they were inconsistent with WTO rules. India has appealed the panel ruling, but the appeal remains in limbo due to the non-functioning of the WTO Appellate Body — a systemic crisis that has stalled dozens of appeals globally since 2019.
Brazil, Australia, and Guatemala have disputed India's sugar and sugarcane support policies, alleging that export subsidies breach the Agreement on Agriculture and the Subsidies and Countervailing Measures (ASCM) rules. India has contested these claims before the WTO panel, maintaining that its sugar support schemes comply with its WTO commitments.
Separately, the European Union, Japan, and Chinese Taipei have raised disputes over India's tariff treatment on Information and Communications Technology (ICT) products. According to Prasada, the complainants allege that India has 'applied customs duties in excess of the bound rates recorded in India's WTO schedule, thereby according less favourable treatment to these ICT goods in violation of GATT 1994.'
Legal Machinery and Costs
To manage these disputes, the Department of Commerce has engaged three specialised bodies: the Centre for Trade and Investment Law, the Centre for WTO Studies, and a panel of empanelled law firms. So far, ₹2.43 crore has been spent on empanelled law firms, Prasada said, noting that further expenditure will depend on the trajectory of ongoing proceedings.
Why the WTO Appellate Body Crisis Matters for India
The paralysis of the WTO Appellate Body — caused by the United States blocking new appointments since 2017 — has left India's appeal in the steel dispute in a procedural vacuum. This is not unique to India; over 30 appeals are reportedly pending globally with no resolution mechanism in sight. For India, it means a dispute filed six years ago remains unresolved with no clear timeline.
Broader Context
India's WTO dispute exposure reflects the friction points of its trade policy: protective tariffs on industrial goods, agricultural support programmes, and technology import duties — all of which trading partners have repeatedly challenged. This comes amid a broader global push-back against industrial policy interventions, with the WTO dispute mechanism itself under strain. The government's position, as articulated by Prasada, is that India's measures are consistent with its international commitments and it will continue to defend them vigorously.