WORLD TRADE
ORGANIZATIONWT/DS175/4
18 May 2000
(00-2038)
Original:  English
INDIA – MEASURES AFFECTING TRADE AND INVESTMENT
IN THE MOTOR VEHICLE SECTOR
Request for the Establishment of a Panel by the United States
The following communication, dated 15 May 2000, from the Permanent Mission of the
United States to the Chairman of the Dispute Settlement Body, is circulated pursuant to Article 6.2 of
the DSU.
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The United States considers that certain Indian measures affecting trade and investment in the
motor vehicle sector are inconsistent with India's obligations under the WTO Agreement.  The
measures in question require manufacturing firms in the motor vehicle sector to achieve specifiedlevels of purchase or use of domestic content;  to achieve a neutralization of foreign exchange and to
balance the value of certain imports with the value of exports of cars and components over a stated
period;  and to limit imports to a value based on previous exports.  These requirements are
enforceable under Indian law and rulings (including under the Foreign Trade (Development and
Regulation) Act 1992).  In addition, manufacturing firms in the motor vehicle sector must comply
with these requirements in order to obtain certain Indian import licenses.  The United States believes
that the Indian measures in question are therefore inconsistent with India's obligations underArticle III:4 and XI:1 of the General Agreement on Tariffs and Trade 1994 (GATT 1994) and
Articles 2.1 and 2.2 of the Agreement on  Trade-Related Investment Measures.
The measures in question are Public Notice No. 60 ((PN)/97-02) of the Indian Ministry of
Commerce, published in the Gazette of India Extraordinary, effective 12 December 1997;  the ForeignTrade (Development and Regulation) Act 1992;  the Export and Import Policy, 1997-2002;
memoranda of understanding signed by the Government of India with manufacturing firms in the
motor vehicle sector pursuant to Public Notice No. 60;  as well as amendments thereto, other
legislative and administrative provisions implemented thereby or consolidated therein, and
implementing measures or associated administrative actions taken thereunder.
On 2 June 1999, the United States Government requested consultations with the Government
of India pursuant to Articles 1 and 4 of the Un derstanding on Rules and Procedures Governing the
Settlement of Disputes (DSU), Article XXII:1 of  the GATT 1994, and Article 8 of the Agreement on
Trade-Related Investment Measures (to the extent it incorporates by reference Article XXII of theGATT 1994) regarding these measures (WT/DS175/1).  The United States and India held such
consultations, in which the Governments of Japan and the European Communities joined, on
20 July 1999.  The consultations provided some helpful clarifications but failed to settle the dispute.
By letter dated 30 July 1999, the United States also requested that India answer certain additional
questions, but we have not received a reply.
./.WT/DS175/4
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Accordingly, the United States respectfully requests the Dispute Settlement Body to establish
a panel with standard terms of reference as set out in Article 7.1 of the DSU.  The United States
further asks that this request for a panel be placed on the agenda of the meeting of the Dispute
Settlement Body that is currently scheduled to be held on 19 June 2000.
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