New Delhi - India has asked the dispute settlement panel of the World Trade Organisation to reject U.S. complaints over New Delhi's stance on phasing out import curbs, the government said on Friday.
The United States has accused India of violating global trade rules by placing quantitative restrictions on imports, and sought WTO intervention to force India to open up trade.
India has ruled out taking steps to liberalise imports while the panel is deliberating on the dispute. It has asserted that the United States must prove that New Delhi is flouting global trading rules.
"India has requested the panel to reject the U.S.'s complaint," a government statement said.
"Since the panel proceeding has not yet concluded, no plan in this regard to remove import restrictions arises from the dispute with the U.S.," it added.
Following the U.S. complaint, a dispute settlement panel of the WTO was set up to decide whether New Delhi was backing out of its international commitments.
India has also said that the Committee on Balance of Payments Restrictions and the General Council of the WTO should look into the U.S. complaint and not the dispute settlement panel.
"The Committee on Balance of Payments Restrictions and the General Council of the WTO have the exclusive authority, and not a dispute settlement panel....," the statement said.
In the wake of complaints from the United States and other developed nations, India told the WTO in May 1997 that it would phase out import restrictions in nine years.
India contended that import curbs were justified as the WTO rules allow a country some concessions if its balance of payments position is not satisfactory.
The developed countries, however, asserted that India's balance of payments was comfortable enough to warrant a faster relaxation of import curbs.
India then made a fresh offer to phase out import limits in seven years, which was also rejected by the United States.
India later offered to lift the curbs in six years, and resolved its dispute bilaterally with Australia, Canada, the European Community, New Zealand, Switzerland and Japan.
While the dispute settlement proceedings are going on at the WTO, the government has asserted that "India is fully committed to assert its rights and meet its obligations as per the WTO Agreement."
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