India – Measures Affecting the Automotive Sector (WT/DS146, WT/DS175): Report of the Panel

Summary

INTRODUCTION

In a communication dated 12 October 1998 (WT/DS146/1), the European Communities requested consultations with India pursuant to Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU), Article XXII:1 of the General Agreement on Tariffs and Trade 1994 (GATT 1994) and Article 8 of the Agreement on Trade-Related Investment Measures (TRIMs Agreement), concerning certain measures affecting the automotive sector. On 21 and 22 October 1998, Japan and the United States, respectively, lodged requests to join in the consultations. The European Communities and India held consultations in Geneva on 2 December 1998. The United States and Japan participated in the consultations under DSU Article 4:11.

In a communication dated 2 June 1999 (WT/DS175/1), the United States requested consultations with India pursuant to Articles 1 and 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU), Article XXII:1 of the General Agreement on Tariffs and Trade 1994 (GATT 1994) and Article 8 of the Agreement on Trade-Related Investment Measures (to the extent it incorporates by reference Article XXII of the GATT 1994) regarding certain measures affecting trade and investment in the motor vehicle sector. The United States and India held such consultations, in which Japan and the European Communities joined, on 20 July 1999. The consultations provided some helpful clarifications but failed to settle the dispute.

On 15 May 2000, the United States (WT/DS175/4) requested the Dispute Settlement Body to establish a panel with standard terms of reference as set out in Article 7.1 of the DSU. The Panel was established on 27 July 2000. On 12 October 2000, the European Communities (WT/DS146/4) also requested the DSB to establish a panel pursuant to Article 4.7 and 6 of the DSU.

At its meeting of 17 November 2000, the DSB agreed that, in accordance with Article 9.1 of the DSU, the Panel established on 27 July 2000 to examine the complaint by the United States should also examine the complaint by the European Communities contained in WT/DS146/4 and agreed that the Panel should have standard terms of reference.