ICT Levy Dispute At WTO: EU May Opt For Retaliatory Tariffs On Indian Goods

By Asit Ranjan Mishra

In what could potentially create trade tensions between India and the European Union (EU), Brussels has threatened to impose retaliatory tariffs on Indian goods if New Delhi doesn’t abide by the World Trade Organization (WTO) ruling against its customs duties on electronic items like smartphones.

In a written reply to a questionnaire sent by Business Standard, an EU spokesperson said: “In the event there is an appeal to the non-functioning WTO Appellate Body (i.e. an ‘appeal into the void’), the EU has in place legislation (the Enforcement Regulation) that allows it to enforce its rights by imposing customs duties or other restrictions in response to an appeal into the void, should the EU decide to do so.”