A WTO ruling in favor of Taiwan in a dispute with India over information technology (IT) product import duties shows that Taipei can effectively use the organization to protect the interests of its exporters, the Office of Trade Negotiations said on Tuesday.
The office said that many Taiwanese IT firms have invested in India amid a US-China trade dispute, and frequently import parts and components to be used in their factories there.
However, New Delhi in 2014 started imposing import duties of up to 20 percent on 32 categories of IT products — including cellphones, base stations, handsets and many IT components — to protect local firms in contravention of its commitments to keeping them duty-free, the office said.
Photo: Ann Wang, Reuters
Last year, more than US$930 million in Taiwanese exports to India were affected by the tariffs, it said.
To protect Taiwan’s competitiveness in the sector, the office consulted with stakeholders, including the Taipei Computer Association, and filed a complaint with the WTO, which was joined by Japan and the EU, it said.
Taiwan requested consultations with India in 2019 and the establishment of a panel to resolve the dispute in 2020, the WTO said.
Although the case was delayed due to the COVID-19 pandemic, a final report issued on Monday found that India’s actions contravened its commitments under the organization, and recommended that it return to compliance, the office said.
The WTO provides a system for resolving disputes and safeguarding the interests of Taiwanese businesses, it said.
Since joining the organization in 2002, Taiwan has been a claimant in seven cases, three of which were settled before litigation.
Of the four cases that went before a panel, three resulted in rulings in Taiwan’s favor, the office said.
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