The European Union has dragged India to the World Trade Organisation requesting establishment of a Dispute Settement Panel (DSP) to examine its complaint against New Delhi's investment regime in the automotive sector. The request came at the meeting of the Dispute Settlement Body (DSB) of the Geneva-based WTO with India expressing disappointment over EU's approach in seeking the intervention of the trade body.
The EU's move came three months after the WTO set up a panel on an identical complaint by the US, expressing objections over India's automobile policy. According to WTO officials, either a panel would be automatically set up if the EU makes a second request or would be incorporated with the panel already established in respect of the US complaint.
India's ambassador to WTO S Narayanan yesterday told the DSB meeting that New Delhi had not only explained the salient features of its automotive policy but also the systemic concerns That it had on the establishment of such a panel. The meeting was told that India's automotive policy was in no way inconsistent with its oblligations under GATT and the agreement on Trade Related Investment Measures (TRIMS).
Narayanan said the measures questioned by the EU were not trade related investment measures.
Bureau Report