India raps US for not following WTO norms

India on Monday took the United States to task at the World Trade Organisation for maintaining high import tariffs on textiles, food products, footwear, leather goods and automotive products, which are among India's top 10 merchandise exports to that country.

At the 9th review of the US trade policy regime, many members -- China, Norway, Thailand, the European Union, among others -- sharply criticised Washington for not adopting WTO-consistent policies in several areas.

During the trade policy review, which takes place biennially, WTO members are allowed to flag the day-to-day trade problems they face in the country under review.

Members can submit written questions as well as seek on-the-spot answers on important issues.

In the run-up to the review, the WTO Secretariat prepares a voluminous report cataloguing all the pros and cons of their trade and macro-economic policies as well as trade measures.

India said it was concerned about the US' "multiplicity of regulatory requirements", sanitary and phytosanitary hurdles to Indian agricultural exports, trade barriers in the area of public procurement and controls on foreign investments.

Intervening during the review, India's trade envoy, Ambassador Ujal Singh Bhatia, said though Washington repeatedly reaffirmed its commitment to an open, transparent and rule-based multilateral trading system, its latest Farm Bill was "indeed a matter of concern".

It raises questions as to whether the US can move meaningfully towards reforming trade in agriculture, the envoy said. He suggested that the diversion by a third of US corn producers for manufacturing ethonol with the help of subsidies caused a serious impact on global food prices.

He said higher charges such as 32 per cent duty for some clothing, 25 per cent for fabrics and 13.2 per cent for yarn dampened exports from India. Bhatia also spoke about the difficulties faced by the Indian IT companies in acquiring new firms in the US because of undefined security provisions.

China blasted Washington for pursuing unhealthy trade policies despite being the biggest beneficiary from global trading.

The latest US Farm Bill, rising protectionism against foreign investments and systematic flouting of WTO rulings had cast serious doubts over Washington's intentions to live with a ruled-based trading system, China lamented.

The US will provide answers on Wednesday.