Setback for India: Loses WTO Case Against Poultry Imports Restrictions
Setback for India: Loses WTO Case Against Poultry Imports Restrictions
In a setback to India, the nation lost a case filed by the US in the WTO for restrictions that have been imposed on poultry imports from America. The Hindu quoted the WTO dispute panel as having given a ruling that imports of poultry from America were “inconsistent” with global norms. In March 2012, the US took Indian to court over the ban on imports of certain America farm products.
India had banned imports of specific American farm products including poultry, meat and eggs. In 2007, India had banned imports of American agricultural products as a precaution to prevent the outbreak of avian influenza. “India’s Avian Influenza (AI) measures are inconsistent with [several articles]....of the SPS [sanitary and phyto-sanitary) Agreement because they are not based on the relevant international standard,” the ruling said.
The WTO sided with US in the 2012 case and it struck down the ban because it says these are not based on scientific principles and are maintained without sufficient scientific evidence.” This ruling has been hailed by the WSJ and other noted media agencies as a victory for the US stand. US officials have pointed out that highly pathogenic strains of avian flu have not been detected in the US since the year 2004.
This is the US's fourth win in the WTO dispute resolution setting, the earlier ones being those concerning China and Argentina. Enforcement of existing trade norms has become very important for the Obama administration which is facing criticism of current trade negotiations with Asia Pacific and the EU, says the Wall Street Journal.
The poultry industry has about 350,000 employed Americans and around 50,000 family farms. There have been considerable attempts on part of the US to protect its poultry industry through representations to the US.
“For too long, Indians have used avian influenza as a trade barrier, despite there being no scientifically defensible reason for a ban,” said Rep. Bob Goodlatte, Republican of Virginia, regarding the ban. Lifting the ban could open India to as much as $300 million in poultry exports, US trade rep Michael Froman said.
While the US has been criticizing the Indian ban as a thinly veiled protectionism, this ruling is seen as a massive setback for India in its attempts to get the WTO to protect its interests.
Indo-US relations are in a very curious situation now though efforts have been made to strengthen bilateral cooperation. Where the path will lead becomes a tricky question following issues such as these.
