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US, Canada may oppose India's quantitative cap on Pulses imports

According to a senior Union Commerce Ministry official, the United States along with Canada is likely to raise an objection at the World Trade Organisation (WTO) opposing a quantitative cap on Pulses imports.


This is separate from the objections filed earlier this month with the WTO on India’s alleged "under-reporting" of market price support for five varieties of Pulses under the minimum support price (MSP).

The quantitative restrictions on Pulses import were necessitated following cheap imports of certain Pulses. The Directorate General of Foreign Trade (DGFT) had in 2017 and 2018 had imposed a quantitative cap on Pulses imports to protect the interests of the domestic farmers.

However, in order to protect farmers’ interests, the Government is exploring various options and mechanisms to control cheap imports, that cannot be challenged in the WTO.

The process of raising an objection at the WTO first involves a call for mutual discussion and the complainant seeks clarification from the respondent nation. If the move is justified and accepted, the dispute doesn't get filed. But if after such discussions, objections remain, a "dispute" is filed at the WTO. Following which, a dispute panel is constituted and this panel gives its final verdict. There is an opportunity for appeal in the appellate body as well.

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