India has requested the World Trade Organisation to reverse the conclusions of a compliance panel in the case relating to anti-dumping duty imposed by the European Union on its cotton bed linen, saying the ruling was "based upon erroneous findings on issues of law."
India had filed its appeal on January 8, 2003 against the decision given in European Union's favour by the compliance panel in November 2002.
The report had ruled that EU had fully complied with the recommendations of a WTO Dispute Settlement Body in March 2001 concerning EU's anti-dumping measures on imports of cotton bed linen.
The implementation panel rejected all claims made by India against EU's implementation measures.
India in its appeal said that the compliance panel had erred in law in concluding that the European Commission did not act inconsistently with Articles 3.1 and 3.2 of the agreement on implementation of Article VI of the General Agreement on Tariffs and Trade 1994.
Even though India has filed an appeal against the compliance panel findings, EU has initiated anti-subsidy investigations against Indian cotton bed linen, which is targetted at export incentives like Export Promotion Credit Guarantee and Duty Entitlement Passbook Scheme.
EU has also initiated a sunset review of the anti-dumping duties imposed on cotton bed linen.
India has already approached the WTO's Dispute Settlement Body against European Union's decision to grant duty and quota free access under its special tariff regime to countries that combat drug trafficking.
New Delhi filed for setting up of a panel at DSB's meeting in Geneva on December 18 against EU's Generalised System of Preferences regime since this benefit was extended to Pakistan causing trade diversion to the extent of euro 250 million. India's request for a panel is likely to be accepted at the next DSB meeting later this month.
