The Indian government has abandoned its appeal against last December’s World Trade Organisation ruling that it had broken global commerce rules by insisting that auto-manufacturers within its territory not only promise to buy some components locally, but that they export products of an equal value of imported inputs.
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New Delhi lodged an appeal the following month, saying that it considered “these conclusions of the panel to be in error and based upon erroneous findings on issues of law and related legal interpretations.”
However, following announcements from the US, the EU, Japan and South Korea that they would contest the appeal, the Indian government has climbed down. In a contrite note to the WTO, it informed its Appellate Body that it would withdraw the appeal, adding: “Inconvenience caused to the Appellate Body, Secretariat, the other parties and the third participants is deeply regretted.”
The disputes proceedings had led to India last April liberalising its so-called “indigenisation” laws regarding auto-manufacturer licensing, but the initial panel report ruled Indian regulations still broke WTO rules.
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