INDIA – MEASURES AFFECTING THE AUTOMOTIVE SECTOR
Document: Request for Consultations
Date: 12 October 1998
Document codes: WT/DS146/1; G/L/261; G/TRIMS/D/14
Complainant: EU
Respondent: India
Third parties: Japan, South Korea
Dispute stage: Consultation
Agreements cited: Art. III, XI  GATT 1994Art. 2.1  Trade-Related Investment Measures (TRIMs)

INDIA – MEASURES AFFECTING THE AUTOMOTIVE SECTOR
Request for Consultations
The following communication, dated 6 October 1998, from the Permanent Delegation of the
European Commission to the Permanent Mission of India and to the Chairman of the Dispute
Settlement Body, is circulated in accordance with Article 4.4 of the DSU.
On behalf of the European Communities, I hereby request consultations with India pursuant
to Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes
(DSU), Article XXII:1 of the General Agreement on Tariffs and Trade 1994 (GATT 1994) and
Article 8 of the Agreement on Trade-Related Investment Measures (TRIMs Agreement), concerning
certain measures affecting the automotive sector.
The measures in question include, but are not limited to, the documents entitled ("Export and
Import Policy, 1997-2002", "ITC (HS Classification) Export and Import Policy 1997-2002"
("Classification") and "Public Notice No 60 (PN/97-02) of 12 December 1997, Export and Import
Policy April 1997-March 2002 – Policy relating to import of CKD/SKD kits/components by Joint
Venture Car manufacturer companies under the MoU to be signed with the Government of India"
("Public Notice No 60"); as well as any other legislative or administrative provision implemented or
consolidated therein; and any implementing measures taken thereunder, including in particular the
Memorandums of Understanding ("MoU") signed by the Indian Government with certain
manufacturers of automobiles.
Under the above measures, imports of complete automobiles and of certain parts and
components therefor are subject to a system of non-automatic import licenses. Furthermore, it
appears that, in practice, non automatic import licenses are also required for the importation of other
automotive parts and components, despite the fact that, according to the Classification as well as to
the notifications made by India to the WTO, imports of those parts and components are "free" from
quantitative restrictions. In accordance with Public Notice No 60, import licenses may be granted
only to local joint venture automotive manufacturers that have signed a MoU with the Government of
India whereby they undertake to comply with, inter alia, certain local content and export balancing
requirements.
The European Communities wish to express their concern with the apparent lack of
conformity of the above measures with the oblig ations of India under GATT 1994 and the TRIMs
Agreement. In particular, the Communities' concerns related to the following provisions:
- Articles III and XI of GATT 1994;
- Article 21 of the TRIMs Agreement.

I look forward to receiving your reply to this request from the European Communities and to
setting a mutually convenient date for these consultations.
A copy of this letter has been sent to the Chairman of the Dispute Settlement Body and to the
Chairman of the Council for Trade in Goods.