EU-UK policy hurting Indian agri exports
A group of countries, including India, have sought compensation from the EU and the UK at the World Trade Organisation alleging that their joint policy to allow a specific quantity of products to be imported at low or zero duty is harming other countries’ exports. The products that these countries are seeking compensation for include agricultural, fish, industrial and processed farm products.
The EU and the UK have dismissed these allegations, claiming that no compensation is required as there has been no loss in value of the concessions in the tariff rate quotas (TRQ). These quotas allow a set quantity of specific products to be imported at low or zero rate of duty.
“They indicated that the proposed modifications to TRQs will lead to significant economic loss, by not only removing flexibility in where product is sent year-to-year, but by also rendering some TRQ allocations too small to be commercially viable,” said a WTO official.
Apart from India, 10 other countries have approached the Geneva-based trade body to demand compensation from the duo such as China, the US, Russia, Canada and five others.