NEW DELHI (dpa-AFX) - The United States requested the World Trade Organisation to open dispute consultations with India about additional duties that country imposed on imports of a number of US goods.
The request for consultations formally initiates a dispute in the WTO.
The United States claims that the additional duties, which India imposed through notifications issued between June 2018 and June 2019, are not consistent with the WTO's General Agreement on Tariffs and Trade (GATT 1994).
The complaint said New Delhi is 'unfairly discriminating against US imports vis-à-vis those from other WTO members' and by according less favorable treatment to US goods than that provided for in India's schedule of concessions.
Tensions have increased over India and the United States' tariff policies recently.
In response to higher duties imposed by the US on products including steel and aluminum, India raised tariffs on 28 products, including almonds and walnuts, on June 16.
On June 1, the US stripped India of its privileges under the Generalized System of Preferences, which allows designated beneficiary countries to export their products duty-free.
President Donald Trump last month called on the Indian government to repeal the hike in tariffs it imposed on US goods, which he says are 'very high'.
But India says the revised tariffs are not high when compared to other developing countries, and are in line with the World Trade Organization rules.
The request for consultation is an opportunity for the parties to discuss the matter and revolve it without going for litigation. After 60 days, if the discussion does not produce any results, the complainant may request adjudication by a panel.
At the recent G-20 summit, world leaders called for making basic reforms to the World Trade Organization.
WTO members are engaged in a debate about reforms to the world trade body to ensure that the organization can remain responsive to the challenges of today's economy.
The impasse in the dispute settlement mechanism remains the most pressing issue.
Copyright RTT News/dpa-AFX
© 2019 AFX News
