THE NLIU-ITLJ

TRADE LAW NEWSLETTER

SEPTEMBER
2023
 INDIAN
India, EU ask WTO not to adopt ruling on ICT import duties till Dec 18
On April 2, 2019, the EU challenged the introduction of import duties by India on a wide
range of ICT products, for instance, mobile phones and components, base stations,
integrated circuits and optical instruments. The EU had claimed that the measures appear
to be inconsistent with certain provisions of WTO. Later, Chinese Taipei and Japan also
joined the dispute. The ruling followed a dispute filed by the EU, Japan and Taiwan against
these duties in WTO. The development assumes significance as India and the EU are
negotiating a free trade agreement. So far, four rounds of talks have happened. Read
more.

India-Middle East-Europe Economic Corridor: India, EU, six others sign MOU at G20
India, USA, UAE, Saudi Arabia, France, Germany, Italy and the EU signed an MOU to
establish the India-Middle East-Europe Economic Corridor. It will consist of two separate
corridors, the East corridor connecting India to West Asia/Middle East and the Northern
corridor connecting Middle East to the Europe. The corridor will encourage and provide
impetus to economic development through enhanced connectivity and economic
integration. Read more.

Indian Government for enhanced export control of dual-use items says DGFT official
The government will ensure enhanced export control of dual-use items so that these do
not fall into the hands of non-state actors and terrorists, Director General of Foreign
Trade Santosh Sarangi. He also said the DGFT prepares a special SCOMET (specialty
chemicals, organisms, materials, equipment and technologies) list of dual-use items after
inter-ministerial consultations. Also at the same time, the government is taking steps to
facilitate more exports of these dual-use items. Read more.

DGFT released an updated list of SCOMET Items

On August 28, 2023, the DGFT vide notification no. 27/2023 issued an updated and
revised list of 𝗦𝗖𝗢𝗠𝗘𝗧 items. The DGFT through the above notification has expanded
the scope of SCOMET items falling under various categories. In addition to the above,
certain clarificatory amendments have also been made to the list of SCOMET items.
Finally, in furtherance to the (i) 𝗚𝗲𝗻𝗲𝗿𝗮𝗹𝗔𝘂𝘁𝗵𝗼𝗿𝗶𝘇𝗮𝘁𝗶𝗼𝗻𝗳𝗼𝗿𝗘𝘅𝗽𝗼𝗿𝘁𝗼𝗳𝗗𝗿𝗼𝗻𝗲𝘀 (𝗚𝗔𝗘𝗗) policy
introduced recently by the Government of India and (ii) the recent expansion of
chemicals falling under the 𝗚𝗲𝗻𝗲𝗿𝗮𝗹𝗔𝘂𝘁𝗵𝗼𝗿𝗶𝘇𝗮𝘁𝗶𝗼𝗻𝗳𝗼𝗿𝗘𝘅𝗽𝗼𝗿𝘁𝗼𝗳𝗖𝗵𝗲𝗺𝗶𝗰𝗮𝗹𝘀 (𝗚𝗔𝗘𝗖) the updated
and revised SCOMET list merely incorporates the sub-categories and items thereunder
that can be exported under the GAED and GAEC. Read more.
 2023 UNCITRAL South Asia Conference
The 2023 UNCITRAL South Asia Conference, co-organized by India's Ministry of
External Affairs (MEA), UNCITRAL, and UNCCI, marked a pivotal moment in India's
engagement with international trade law. Inaugurated by Chief Justice of India Dr.
DY Chandrachud, the event featured prominent figures, including Minister of State
for External Affairs Dr. Rajkumar Ranjan Singh and Attorney General R.
Venkataramani. This three-day conference aimed to strengthen interaction
between UNCITRAL, the judiciary, bureaucracy, academia, and India's legal
community, furthering the nation's commitment to international trade law.
Discussions revolved around ISDS reforms, investment treaty challenges, and
UNCITRAL's projects, emphasizing India's role in shaping UNCITRAL's agenda and
promoting itself as an arbitration hub. Read more.

EU carbon tax and other laws to impact $37 billion of India’s exports: Report
India's exports to the European Union (EU), which account for 43% of the country's
total exports to the region, are likely to be affected by the EU's non-tariff measures
(NTMs), including the CBAM. The Council on Energy, Environment and Water has
highlighted that sustainability-focused EU regulations pose a risk to product
categories such as textiles, chemicals, consumer electronics, plastics, and vehicles.
Read more.

DP World to invest over Rs 600 cr in Free Trade Zones in India

DP World, a Dubai-based logistics company, plans to invest over Rs 600 crore to
expand its free trade zones (FTZ) in India. The company is looking to collaborate
with major electronics and tech companies to export and import from its facilities
as these companies seek to enhance their manufacturing presence in India. DP
World already operates free trade zones in Chennai and Mumbai, and plans to
invest in three new zones in Mumbai, Chennai, and Kochi. The FTZs offer a global
trading platform that handles imports, exports, and re-exports. Read more.
 India winning global manufacturing battle, BCG report shows impact of supply
chains shifting away from China
India has emerged as a winner in global manufacturing, with its exports to the US
increasing by $23 billion, a 44% rise from 2018 to 2022. In contrast, China
experienced a 10% decline in exports to the US during the same period. This shift in
manufacturing and sourcing occurred due to trade wars, the pandemic, geopolitical
tensions, and supply bottlenecks. Read more.

Malaysia to discuss rice export curbs with India

Like other countries in Asia, Malaysia has seen lower supplies and an increase in rice
prices in recent weeks as hot weather threatens harvests, with countries led by top
exporter India restricting shipments to curb inflation and ensure food security.
Malaysia has asked rice millers in the country to increase their monthly production
by 20% for a year, Mohamad said, adding that current domestic rice shortages were
expected to be resolved within a month. Read more.

Over 2,000 exhibitors participate in UP International Trade Show

More than 2000 exhibitors are participating in the Uttar Pradesh International Trade
Show- a first of its kind event being held in UP to showcase products manufactured in the
state to B2B and B2C buyers from India and abroad. More than 70,000 B2B from 70
countries have registered for the trade show. The show being held at the India Expo Mart
in Greater Noida was inaugurated on Thursday by president Droupadi Murmu. Murmu
pointed out that the G20 New Delhi Leaders' Declaration included the goal of local value
creation and identifying the challenges faced by MSMEs and connecting MSMEs at the
international level and said the trade show would "advance India's national and
international priorities in line with the goals of the G20".
The show is also expected to give international exposure to the products produced under
UP's flagship One District One Product (ODOP) scheme and to 54 GI-tagged products
from the state. Read more.
 India-U.K. agree to continue to ‘work at pace’ towards a Free Trade Agreement
Reviewing progress on the India-U.K. FTA in the works, Indian Prime Minister and his
British counterpart Rishi Sunak agreed that Ministers and negotiating teams would
continue “to work at pace” towards an agreement. Both leaders also reviewed the
progress of Free Trade Agreement negotiations and expressed hope that the
remaining issues could be addressed at the earliest so that a balanced, mutually
beneficial and forward looking Free Trade Agreement is concluded soon. Read
more.

Canada paused negotiations on free trade agreement with India

Over half a dozen rounds of talks have been held between the countries on the trade
pact so far. In March last year, the two countries re-launched negotiations for an interim
agreement, officially dubbed as Early Progress Trade Agreement (EPTA). In such
agreements, two countries significantly reduce or eliminate customs duties on the
maximum number of goods traded between them. They also liberalize norms for
promoting trade in services and attract investments. Indian industry was looking at duty-
free access for products like textiles and leather besides easy visa norms for the
movement of professionals. Canada has interests in areas like dairy and agricultural
products. Canada conveyed that they were taking a pause in India-Canada negotiations
on the Early Progress Trade Agreement. This will enable us both to take stock of progress
and next steps. We will decide by mutual agreement when negotiations will resume. Read
more.

“We are very close' on FTA with India”: UK trade minister

The Cabinet minister was specifically asked about some UK media reports suggesting
that cricket fan British Prime Minister Rishi Sunak may be planning a return visit to India
next month to sign the deal on the sidelines of the World Cup being hosted across the
country. Meanwhile, amid a diplomatic standoff between two of its allies -- India and
Canada -- over the contentious issue of pro-Khalistan extremism, Sunak's spokesperson
at Downing Street reiterated this week that trade talks with New Delhi remain on track.
Read more.
 India imposes anti-dumping duty on Chinese steel for 5 years
An anti dumping duty of $613 per tonne has been imposed by India on import of Chinese
flat-base steel wheels, in September 2023 for another 5 years. This is an extension of the
existing duty already imposed in 2018. The notification imposing the duty justifies the
imposition on the argument that the domestic industry does not gain any undue
advantage from it and on evidence of export price indicating that Chinese exporters are
exporting these goods to third countries on significantly injurious and dumped prices.
(Anti dumping duties are additional taxes on goods imported, to compensate for the
difference between their export price and normal value.) Read more.

India probes dumping of imported fasteners and unframed glass mirrors from China
The Directorate General of Trade Remedies, India has announced an anti-dumping
investigation into the import of fasteners and unframed glass mirrors from China. The
investigation was prompted by a representations made by producer associations in both
sectors, that there has been a significant rise in both the absolute and relative volume of
these imports from China and that prima facie evidence exists indicating the injury
suffered by the domestic industry because of the dumped imports. Read more.

India unlikely to export sugar in 2023/24 season: ED&F Man Commodities

India allowed mills to export only 6.1 million tonnes of sugar during the current season to
Sept. 30, nearly half of the record 11.1 million tonnes sold last season. The country is
likely to receive an average amount of rainfall in September, after the driest August in
more than a century. Although September rains would help the sugarcane crop, yields
would be lower due to lower rainfall in August.
India's absence from the world market would be likely to increase benchmark prices in
New York and London that are already trading around multi-year highs, triggering fears of
further inflation on global food markets. Re

India, Brazil begin talks to resolve sugar related trade dispute at WTO
India and Brazil are holding talks to resolve a sugar-related trade dispute at the World
Trade Organization (WTO). As part of the solution, Brazil may share ethanol production
technology with India. This move would help India reduce its reliance on oil imports, cut
carbon emissions, and meet its target of 20% ethanol-blended petrol by 2025. Read
more.
 INTERNATIONAL
New Zealand formally accepts WTO Agreement on Fisheries Subsidies
New Zealand deposited its instrument of acceptance of the Agreement on Fisheries
Subsidies on 6 September, making it the first country from the Oceania region to do
so. Trade and Export Growth Minister Damien O’Connor met virtually with WTO
Director-General Ngozi Okonjo-Iweala to mark the occasion. Ambassador Clare Kelly
presented New Zealand’s instrument of acceptance in person. DG Okonjo-Iweala
furthermore commended New Zealand for its contribution of CHF 100,048 to the
WTO Fisheries Funding Mechanism. Read more.

WTO submitted its new report to the UN High-level Political Forum on Sustainable
Development
The role of trade in helping countries recover from the COVID-19 pandemic and
meet the United Nations’ Sustainable Development Goals (SDGs) is highlighted in
this report. The report also underlines the WTO’s contribution to improving
livelihoods and making trade work for people. To increase awareness about the
SDGs, the WTO is also showcased the role of trade in attaining these goals in an
exhibition that took place in Geneva from 7 September 2023. Read more.

European Parliament Approves Critical Raw Materials Act

The European Parliament has approved the Critical Raw Materials Act with a
significant majority, aiming to reduce the European Union’s dependence on China
for critical minerals and metals essential for green technologies. The EU seeks to
increase its domestic capacity for these materials used in manufacturing solar
panels, windmills, and electric car batteries. The regulation aims to diversify
imports and ensure secure and sustainable supplies by 2030. The EU also aims to
increase its processing capacity and prioritize strategic partnerships with countries
like Australia and Chile to diversify the supply chain. However, environmentalists
have expressed concerns about permitting processes without addressing
environmental standards. The law will undergo further discussions between the
Council and Parliament for finalization. Read more.

Ukraine initiates WTO dispute complaints against Hungary, Poland and Slovak
Republic
Ukraine has requested WTO dispute consultations with Hungary, Poland and the
Slovak Republic regarding the continued imposition of import bans by the three
countries on certain agricultural products, including grains, from Ukraine. The
request was circulated to WTO members on 21 September. Ukraine claims the
measures imposed by Hungary, Poland and the Slovak Republic appear to be
inconsistent with various provisions under the WTO's General Agreement on Tariffs
and Trade 1994 and the Agreement on Agriculture. Read more.
 China appeals WTO dispute panel
report regarding Chinese duties on
US products
China has notified its decision to
appeal the panel report in the case
brought by the United States in
“China — Additional Duties on
Certain Products from the United
States” (DS558). The panel report
was circulated to WTO members on
16 August. The appeal was
circulated to WTO members on 20
September. Read more.

Dominican Republic appeals panel report regarding duties on steel bars from
Costa Rica
The Dominican Republic has notified its decision to appeal the panel report in the
case brought by Costa Rica in “Dominican Republic — Anti-dumping Measures on
Corrugated Steel Bars” (DS605). The panel report was circulated to WTO members
on 27 July. The appeal was circulated to WTO members on 22 September.
Given the ongoing lack of agreement among WTO members regarding the filling of
Appellate Body vacancies, there is no Appellate Body Division available at the
current time to deal with the appeal. Read more.

Egyptian white cement attracts new South Korean anti-dumping duties

South Korean government plans to implement import duties (of about 72%) on
white cement from Egypt as an anti-dumping measure, pursuant to the impact of
these imports on the domestic industry and a complaint by the domestic industry
against the Egyptian Royal El Minya Cement and Albatros International Cement
Trading in March 2023 and based on the data that Egyptian white cement
comprised of 10% of market share in the South Korean industry in 2022. This has
been recommended by the Korean Trade commission. Read more.

China announces anti-dumping measures against Taiwan

China announces to impose anti-dumping tariff on polycarbonate (PC) imports from
Taiwan on account of “PC imports from Taiwan engaging in dumping activities,
causing concrete damages to the mainland's industry” according to China. PC is a
plastic material used in electronic and electrical, protective, medical and
automotive appliances. This move comes in the backdrop of Taiwan Vice President
Lai Ching-te’s 2-days visit to US, while on his way to Paraguay to attend presidential
inauguration. China has displayed an opposing stance to US keeping any relations
with Taiwan. Read more.
 IN OTHER NEWS
NLIU-ITLJ is organizing an essay competition on International Trade Law. The
deadline has been extended to 15th October. Grab the last chance to register for
the competition!
 EDITORS’ PICKS

Trade Finance Talks - How to Prepare for Sibos 2023

Payments Pros – The Payments Law Podcast: Evaluating

Government Sanctions in the Payments Industry

Authors:
Vaishnavi Salimath (Senior Editor)

Junior Editors:
Sumit Patnaik
Kushagra Mahajan
Muskan Khatri

Designer: Swadha Chandra