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EU-India WTO ICT Tariff Dispute: EU Offers Fresh Talks

5 May 20251 min read
INTERNATIONAL AFFAIRSEU-India WTO ICTTariff Dispute: EUOffers Fresh Talks5 May 2025safalsetu.com

Why in the news

A senior EU official said in May 2025 that Brussels would resume talks on India’s ICT duties if India wished an amicable deal.

Key facts

  • Duties: on phones, components and handsets, phased in from 2014.
  • EU claim: breach of the Information Technology Agreement (ITA), which requires zero duty on covered goods.
  • April 2023: WTO ruling favoured the EU; India’s appeal went to a defunct Appellate Body, an ‘appeal into the void’.

EU moves

  • Public consultation under its Enforcement Regulation to gauge harm, a preliminary step towards possible retaliation.
  • Proposed the MPIA arbitration route.

India’s stand

  • Wants the Appellate Body restored; rejected MPIA.
  • Says the goods fall outside ITA-1 and cites sovereign tariff rights, while continuing bilateral talks.

Exam angle

  • Agreement: ITA; arrangement: MPIA.
  • Hurdle: dysfunctional WTO appellate mechanism.

Test yourself

1. In the EU-India ICT tariff dispute, the EU argued India's duties violate which agreement?

The EU says the ITA mandates zero duty on covered products.

2. Which EU-proposed route for the ICT tariff dispute did India decline?

India rejected the Multi-Party Interim Appeal Arbitration Arrangement.

3. India's appeal in the ICT tariff case went to a WTO body described as what?

The Appellate Body is non-functional, hence an 'appeal into the void'.

This topic is part of Daily Current Affairs 4 & 5 May 2025 (21 topics).

All topics of the dayDay quizMay 2025

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