US FQ 20:
(on US 49)
Report by the Secretariat (WT/TPR/S/249):III. TRADE POLICIES AND PRACTICES BY MEASURE: (2) Measures Directly Affecting Imports: (vi) Import prohibitions, restrictions, and licensing: Page 57, paragraph 62:
Please explain the rationale for imposing restrictions on imports that do not meet a "minimum price." How does India assess the "quality" of a product that is so restricted? Does India impose a corresponding "minimum price" requirement on the sale of domestic products?
Reply: Minimum import price is one of the criteria to determine quality. Several factors are kept in mind while determining the minimum price.
U.S. Follow-Up Question: India's response attempts to address how India determines the minimum price. Please explain, however, why imports are required to meet a "minimum price" at all, and whether domestic products sold in India must also meet the same "minimum price."
Reply: The essence of minimum price is the concern on quality products to be imported. Such specific products are minimal.
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