The EU to resolve dispute with India over ICT tariffs

The EU continues to seek a diplomatic resolution by inviting India to join the Multi-Party Interim Appeal Arrangement (MPIA) or consider ad hoc appeal arbitration.

Flags of India and EU

The European Union is addressing a trade dispute with India over tariffs on ICT goods, which India has effectively blocked under the World Trade Organization (WTO) by appealing a favourable report for the EU to the non-functional WTO Appellate Body, stalling the resolution process. India has also rejected alternative dispute resolution methods, such as ad hoc appeal arbitration or a mutually agreed solution.

In response, the EU uses its Enforcement Regulation to enforce international trade obligations when disputes are blocked, ensuring that WTO rules are respected. The EU has launched a consultation for concerned entities, with responses due by 10 February 2025, to guide decisions on potential commercial policy measures should a mutually satisfactory solution not be reached.

At the same time, the EU continues to seek a resolution through alternative means, inviting India to join the Multi-Party Interim Appeal Arrangement (MPIA) or agree to ad hoc appeal arbitration. The dispute began in 2014 when India imposed customs duties of up to 20% on various ICT products, which the EU argues violates India’s WTO commitments to apply a zero-duty rate.

In 2019, the EU initiated the WTO dispute settlement process, and in April 2023, the panel ruled in favour of the EU, confirming that India’s tariffs were inconsistent with WTO rules. India appealed the decision in December 2023, prolonging the dispute.