REPORT BY THE SECRETARIAT: SECTION III: TRADE POLICIES AND PRACTICES BY MEASURE: (2) MEASURES DIRECTLY AFFECTING IMPORTS:
Question 30: According to our exporters, India applies two different set of policies in telecom equipment import for Chinese suppliers and suppliers from some other countries. Export of Chinese equipment to India is often restricted on security grounds. Could India please confirm the above statement? If so, what is the basis for the Indian Government to adopt two sets of policies on security review concerning import of telecom equipment? Is this in conformity with the WTO non discrimination principle? Please provide data of telecom equipment import from China as well as from other countries. How will the Indian Government ensure policy stability and transparency in the future?
Reply: The above statement, based on accounts of exporters does not seem to be factually correct as China is the leading supplier of telecom equipment to India. Restriction on imports on telecom equipment, if any, has been on security grounds. This is not inconsistent with Article XX of GATT.
