Dealing With Tariff Complaints

Context: The World Trade Organisation’s (WTO’s) India review shows protectionism has alienated partners.

Key Concerns About India’s Trade Protectionism Policy

• Non-tariff barrier: lack of clarity in agricultural policy (food-grain policy in particular) was raised by Australia and New Zealand.
• Absence of reform in sugar procurement as a key concern was raised by Brazil.
• Tariff barrier: Rise in simple average MFN applied tariff rate from 13.5% in 2015 to 17.6% in 2019.
  • Rising duties on smartphones and assistance for domestic producers in steel by
  • Anti-dumping and safeguard measures in spite of a bilateral free trade agreement by South Korea.
  • Lack of trade openness and integration into global value chains by the European Union.
  • Frequent tariff changes disrupted planned investment by Taiwan in India.

Conclusion: India needs to reassure that some protectionism clauses are not permanent and must insulate the Indo-US relationship from disagreements over tariffs and non-tariff barriers.