India has demanded that the US withdraw its plea at the World Trade Organization (WTO) seeking authorisation to impose a retaliatory fine of $450 million annually on the country as it is now fully compliant with the dispute panel’s orders on removal of restrictions on poultry imports.
“In view of the fact that India has brought itself into conformity with the recommendations of the DSB (Dispute Settlement Body), India would urge the United States to terminate the proceedings in this dispute,” said a submission by India to the DSB last week.
The poultry import dispute took a turn for the worse last July when the US sought retaliatory action in the form of a $450 million annual fine on India for harming its trade interests by failing to comply with a WTO ruling within the given time frame.
The WTO had ruled the year before that India’s ban on poultry imports from the US and other members to protect itself from low-pathogen avian influenza (bird flu) did not have a scientific justification. India was asked to make its laws WTO compliant.
“India issued in July 2016 the notification that it had adopted measures necessary to comply with the recommendations of the DSB. Pursuant to bilateral discussions with the US, India amended its notification in September 2016, clarifying the concerns of the United States,” the submission stated.
The lifting of import restrictions by India could open the country’s doors to cheap chicken legs from America and hit the local industry. According to industry estimates, the US could potentially take away 40 per cent of the market of domestic breeders, who produce 3.5 million tonnes of chicken annually.
Per the old rules, India would stop importing poultry from the entire country when there was the slightest outbreak of bird flu in any part, however remote, and even if the virus was of a low strain.
Under the revised rules, India has given recognition to the concept of disease-free areas and areas of low pest or disease prevalence. This means supply of poultry can continue from a disease-free area in a country even if the disease is prevalent in another part of that country.
Areas of low pest or disease incidence are not to be treated at par with high pest regions. The new notifications and clarifications are in line with the relevant international standard: the OIE Terrestrial Animal Health Code.