REPORT BY THE SECRETARIAT: SECTION III: TRADE POLICIES AND PRACTICES BY MEASURE: (2) MEASURES DIRECTLY AFFECTING IMPORTS:
Question 29: It is reported that India lists China as a "sensitive country", and takes legal measures to restrict import of Chinese power equipment. Could India confirm this news? And if so, please explain its legal basis.
Reply: Countries are not treated as "sensitive", but specific products are. It is not clear what the source of the above statement is. These reports are not true as China is the largest supplier of Power equipment to India. Any import restriction is on MFN basis and are meant to promote import of quality materials/equipment and products which are not sensitive from the security point of view. These restrictions are covered under Art XX of GATT.
