Why in news?
=>Taiwan has sought consultations with India under the WTO’s safeguard agreement against India’s decision to impose import duty on solar cells. The consultations, however, do not fall under WTO’s dispute settlement system.
=>India had imposed safeguard duty of up to 25% on solar cells imports from China and Malaysia for two years to protect domestic players from steep rise in inbound shipments.
=>Taiwan says it has significant interests in Chinese-manufactured solar cells, and is home to some of the world’s biggest companies including DelSolar, Motech, and Neo Solar Power.
=>The objective of the consultation is to “exchange views on the proposed measures and reaching an understanding on ways to achieve the objectives” set out in an article of the WTO Agreement on Safeguards.
=>Taiwan seeks to hold consultations “as soon as possible and looks forward to India’s positive response to this request.
=>According to experts, seeking consultations under the safeguard agreement is a way to inform other countries that they are not fulfilling their commitments under the WTO rules.
=>Solar cells electrical devices that convert sunlight directly into electricity are imported primarily from China, Malaysia, Singapore and Taiwan.
=>Imports of solar cells from Malaysia and China account for more than 90% of the total inbound shipments in the country.
What is ‘WTO Agreement on Safeguards’?
=>The Agreement on Safeguards sets forth the rules for application of safeguard measures pursuant to Article XIX of GATT 1994.
=>Safeguard measures are defined as “emergency” actions with respect to increased imports of particular products, where such imports have caused or threaten to cause serious injury to the importing Member’s domestic industry.
=>Such measures, which in broad terms take the form of suspension of concessions or obligations, can consist of quantitative import restrictions or of duty increases to higher than bound rates.
=>Major guiding principles of the Agreement with respect to safeguard measures are that such measures must be temporary; that they may be imposed only when imports are found to cause or threaten serious injury to a competing domestic industry; that they be applied on a non-selective i.e., most-favoured-nation, or “MFN”, basis; that they be progressively liberalized while in effect; and that the Member imposing them must pay compensation to the Members whose trade is affected.
Pic courtesy:DNA India
Your email address will not be published. Required fields are marked *
© Powered By Current Hunt, Designed & Developed By Quizsolver.com
This function has been disabled for Current Hunt.