WTO ruling a win for Taiwan, but island’s investors in India could face long wait to see any benefits

World Trade Organization orders New Delhi to remove tariffs on imports of electronic parts from Taiwan

Taiwanese trade negotiators expect Indian appeal, but US roadblock needs to be removed first

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The World Trade Organization (WTO) said on April 17 that India could not legally collect tariffs on imports of electronic parts that Taiwan’s government estimated at a value of US$930 million last year. Photo: AP

Published: 6:00pm, 1 May 2023

A World Trade Organization (WTO) tariff ruling against India could lower costs for Taiwan’s growing investments in the South Asian giant, which analysts said is seen as an alternative to mainland China as a site for manufacturing.

However, they said, compliance with the WTO order could take time and more protectionist moves might follow.

The trade body said on April 17 that India could not legally collect tariffs on imports of electronic parts that Taiwan’s government estimated at a value of US$930 million last year.

India raised tariffs on 32 categories of imports to up to 20 per cent in 2014, Taiwan’s Office of Trade Negotiations said.

Those goods include base stations, mobile phones and machines for switching and routing. Taiwanese investors use many of them as parts for finished products made at their Indian factories or as tools used in manufacturing.

India argued to the WTO that its elimination of tariffs under the 27-year-old Information Technology Agreement were “static” and limited to products that existed when the agreement was made, according to a statement from the trade body.

It said the agreement now covers 81 WTO members and about 97 per cent of world trade in information technology products.