Report by the Secretariat (WT/TPR/S/249): III. TRADE POLICIES AND PRACTICES BY MEASURE: (3) Measures Directly Affecting Exports: (v) Export prohibitions, restrictions, and licensing: Page 39, para 18, Page 77, paragraphs 131 and 132, (Tables III.15 and Table III.16):
India has taken a number of measures, including at the state level, to restrain exports of steelmaking raw materials, despite the fact that India's growing steel industry itself relies on global trade for access to steelmaking raw materials. Do states have the authority under Indian law to ban the export of any product? Please explain the rationale for maintaining export licensing, bans and other restrictions on iron ore and ferrous scrap, in light of Article XI of the GATT. Also, please explain why export taxes and additional measures are necessary to restrict trade in these raw materials. How does the imposition of export taxes (but very low domestic taxes) contribute to the responsible development of India's iron ore resource? Does India have any plans to reduce or eliminate its trade-distorting export taxes on iron ore?
Reply: These taxes are reviewed from time to time. The nature of export restriction depends on the conditions and situations at a given time and is not inconsistent with the WTO provisions. Export regulations are governed by the Central Government.
U.S. Follow-Up Question: What are the "conditions and situations" surrounding any existing export ban or restriction that substantiate India's assertion that they are not inconsistent with WTO provisions? Please explain how, given that export regulations are governed by the Central Government, individual states (e.g., Karnataka) have been able to impose export bans on iron ore and other products.
