MONDAY, DECEMBER 24, 2001
US hails victory in auto trade spat with India
WASHINGTON: US Trade Representative Robert Zoellick on Friday hailed a victory in a World Trade Organization dispute with India over auto trade.
He said in a statement the international trade body confirmed that WTO members cannot impose local content or trade balancing requirements on companies doing business within their borders.
"Not only do such requirements make it harder for US to operate abroad, they also take away export opportunities from our companies at home," Zoellick said. "I am pleased that we have won this case and the panel has rejected India's restrictions on their automotive sector."
India has required auto manufacturers to sign a memorandum of understanding limiting the imported content of passenger cars produced in the country to no more than 50 percent by the end of three years and 30 percent by the end of five years.
Another provision required the auto manufacturers to "balance" their imports of auto kits and components with exports of cars or car parts of at least equal value.
The United States and the European Union challenged the Indian provisions in 1999.
The dispute settlement panel investigating the matter issued its ruling on December 13 in a report to the parties.
Unless India appeals, the WTO General Council could formally adopt the report in January, Zoellick said.
That would require India to bring its regulations into conformity with WTO rules. ( REUTERS )
Copyright © 2001 Times Internet Limited. All rights reserved.