Japan Urges India to withdraw WTO Appeal over IT Tariffs

Ten News Network

New Delhi (India), 31st May 2023: Japan has asked India to withdraw its decision to appeal a World Trade Organisation (WTO) dispute settlement body (DSB) ruling that disapproved New Delhi’s imposition of tariffs on mobile phones and electronic components, among other information and communication technology (ICT) goods.

At a DSB meeting on Tuesday, the US voiced its support for Japan, claiming that India’s tariffs impose an unjustified financial burden on foreign enterprises and limit access to essential high-tech items for Indian consumers and firms.

While China welcomed the panel report, Canada and the EU asked India to settle the dispute through the Multi-Party Interim Appeal Arbitration Arrangement (MPIA), an alternative system for resolving WTO disputes that New Delhi opposes because it undermines the multilateral trading system.

At its meeting on Tuesday, the DSB resolved to extend the deadline for adopting the panel verdict in Taiwan’s complaint until September 19. According to India and Taiwan, the extra time will help resolve the disagreement.

There is currently no Appellate Body Division available to hear appeals due to the continuous lack of consensus among WTO members on filling vacancies in the body. As a result, all appeals are seen as ‘appeals into the void’.

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