India opposes penalty pitch by WTO

NEW DELHI: India has strongly opposed a proposal from developed countries for administrative actions and penalties in case of delayed submissions of notifications by member countries. It is wrong to assume wilful default on the part of members rather than acknowledging the capacity constraints and other legitimate difficulties faced by many developing countries, India said.

Developed countries including the US, EU, UK, Australia, Canada and others have moved a draft general council proposal on procedures to enhance transparency and improve compliance with notification requirements under WTO agreements, stating that if a country fails to submit notifications by the dead Under line, then it has to give an explanation of the delay every six months.

Under the phase 1 of the proposed administrative measures, beginning 2025 or 2026, a member which fails to submit notifications shall be designated as “WTO member with notification delay” and shall be identified as such when offered the floor in the General Council; it shall be called upon to speak in WTO formal meetings after all other members have taken the floor.

Under phase 2 of the proposal, if a member has been subject to Phase 1 measures for one year, then other members are free not to respond to its queries posed during trade policy reviews and shall not have its representatives nominated to preside over WTO bodies.

India has faced several complaints by developed countries regarding its delayed submission of agricultural subsidy notifications or non-submission of subsidy notifications such as in case of sugar export subsidies.

Earlier this month, during a discussion on the matter at the General Council meeting, India said it gets this feeling that transparency is solely viewed as fulfilling notification obligations of developing countries, including least developed countries, whereas transparency is infused across the functions of the WTO, from the conduct of its day-today functioning, and how these functions are communicated to the outside world.

Giving a number of such examples, India said the final bound AMS (Aggregate Measurement of Support) commitments which were supposed to be provided within 120 days of the year by some of the members have not been provided for more than two years.

It also pointed out the weak notification track record of developed countries in notification commitments under General Agreement on Trade in Services (GATS). Under TRIPS agreement, developed countries have a positive legal obligation to provide incentives to enterprises and institutions in their territories to promote enhanced technology transfer to least developed countries.

SOME COUNTRIES HAVE MOVED A DRAFT GENERAL PROPOSAL ON PROCEDURES TO IMPROVE COMPLIANCE