India and Taiwan have jointly requested the World Trade Organization (WTO) to further defer a ruling in a dispute concerning import duties on certain information and communication technology (ICT) products, seeking an extension until April 2026. This request aims to provide both nations additional time to resolve the matter through ongoing discussions and facilitate a mutually agreeable solution. The WTO's dispute settlement body is expected to consider this request shortly.
The dispute revolves around import duties imposed by India on specific ICT goods, which Taiwan, along with other nations, contested, arguing that they violate global trading norms. A WTO panel had previously ruled against India's import duties on these products, following complaints from the EU, Japan, and Taiwan.
India had implemented these duties with the goal of promoting domestic manufacturing. The imposed duty started at 7.5% but was later increased to 15% and eventually 20%.
This is not the first time India and Taiwan have sought a delay in the WTO ruling. The dispute settlement body has granted such requests multiple times in the past. In October 2024, a similar request was accepted, deferring the ruling until April 2025, as both sides continued to engage in talks to resolve the issue. Before that, deferrals were granted until September 19, 2023, December 18, and April 26, 2024.
According to WTO rules, a panel's ruling must be adopted by the dispute settlement body for implementation within 60 days of its release. However, countries involved can jointly request a delay in the adoption of the ruling to allow for mutual resolution efforts.
If India and Taiwan fail to reach an agreement, Taiwan has the option to pursue the adoption of the WTO panel filings. In that scenario, India could appeal the case to the WTO's Appellate Body. However, the Appellate Body is currently non-functional due to the U.S. blocking the appointment of judges.