US, EU Flag India’s Non-Tariffs and Regulations as Supply Chain Barriers at WTO'S Trade Policy Review
Summarized by AI; it may make mistakes. Check important info
Summarized by AI; it may make mistakes. Check important info
The United States and the European Union have raised formal concerns at the World Trade Organization, arguing that high tariffs and restrictive domestic regulations are blunting India's push to integrate deeply with global supply chains.
During India’s eighth trade policy review at the World Trade Organization (WTO), Western trading partners pointed to a web of non-tariff roadblocks. These include sanitary and phytosanitary measures, technical barriers to trade, strict local-content mandates, and unpredictable customs procedures.
The WTO's trade policy review process allows member states to examine each other's trade policies and question regulations every five years. US and EU acknowledged India's broader economic momentum but pressed India for structural adjustments.
Tariffs and Quality Control Orders Draw Fire
The European Union singled out India's increasing reliance on Quality Control Orders(QCO). Brussels argued that these mandates impose conformity assessments based on domestic standards that deviate from international benchmarks.
According to the EU, such rules risk insulating the domestic market and reversing recent economic gains. While the bloc noted that a NITI Aayog committee report has triggered internal reform discussions, it stressed that ground-level implementation remains critical.
The United States echoed these sentiments, noting that QCO continue to disrupt shipments of information and communication technology goods, medical equipment, and chemicals. Washington also criticised domestic local-content rules for undermining the market competitiveness of imported items across multiple sectors.
Services, Digital Trade and Data Stances
Beyond merchandise trade, US highlighted persistent market access barriers within India's services economy. Restrictions across retail, e-commerce, and electronic payment systems prevent a level playing field for foreign entities.
The US also urged India to steer clear of mandatory data-localisation rules and cross-border data flow restrictions, even as it acknowledged consultations on the Digital Personal Data Protection Rules.
New Delhi Defends Regulatory Sovereignty
Responding to the scrutiny, Indian representatives defended the country's policy framework before the WTO floor. Officials maintained that sanitary and phytosanitary measures are designed to protect public health, food safety, and biosecurity while keeping legitimate trade moving.
