Bloomberg News reports that the World Trade Organization (WTO) adopted a dispute ruling that requires India to modify its import ban on U.S. poultry products.If India fails to respond, the U.S. may seek permission to impose retaliatory trade measures. During a June 19 meeting in Geneva, the WTO Dispute Settlement Body formally adopted a ruling that declared India’s import ban inconsistent with its international obligations, a procedural step that could open the door to retaliatory trade tariffs if India does not comply. Earlier this month, a WTO appellate body ruled that India’s ban was not based on international scientific standards, was more trade restrictive than necessary and unfairly discriminated against U.S. imports. The U.S. poultry industry estimated that India’s import prohibitions cost U.S. producers $300 million per year in lost sales.
‘The WTO findings “comprehensively demonstrate that categorical import prohibitions are not appropriate in addressing the risks from avian influenza,” the U.S. delegation said in its intervention. U.S. poultry producers are struggling to contain the largest outbreak of avian influenza in U.S. history, which has affected 48 million birds in 15 states, according to the U.S. Department of Agriculture. The U.S. said India’s measures were “far more trade restrictive than necessary,” precluded regionalization and “unjustifiably” discriminated against foreign products in favor of domestic products. “Countries should not maintain measures that apply to the whole territory of a member when the [avian influenza] incident is limited to a particular region,” the U.S. said.
