India - Measures Affecting the Automotive Sector

On 6 October 1998, the EC requested consultations with India concerning certain measures affecting the automotive sector being applied by India. The EC stated that the measures include the documents entitled “Export and Import Policy, 1997-2002”, “ITC (HS Classification) Export and Import Policy 1997-2002” (“Classification”), and “Public Notice No. 60 (PN/97-02) of 12 December 1997, Export and Import Policy April 1997-March 2002”, and any other legislative or administrative provision implemented or consolidated by these policies, as well as MoUs signed by the Indian Government with certain manufacturers of automobiles. The EC contended that: under these measures, imports of complete automobiles and of certain parts and components were subject to a system of non-automatic import licenses. in accordance with Public Notice No. 60, import licenses might be granted only to local joint venture manufacturers that had signed an MoU with the Indian Government, whereby they undertook, inter alia, to comply with certain local content and export balancing requirements. The EC alleged violations of Articles III and XI of GATT 1994, and Article 2 of the TRIMs Agreement.