WTO panel rules against India in dispute over bird flu curbs on US poultry

The World Trade Organisation (WTO) disputes panel has ruled against India's measures to block poultry imports from the United States because of bird flu fears, stating the fears were unsubstantiated.

India had imposed import restrictions based on international rules on animal health, but the panel agreed with the United States and said India's measures were not based on international standards and were discriminatory.

The United States brought the case in March 2012, with the US poultry industry seeking entry into a market for exports valued at $300 million at that time.

The dispute concerns India's import prohibition affecting certain agricultural products from countries reporting Notifiable Avian Influenza (NAI) to the World Organisation for Animal Health (OIE).

Pursuant to its avian influenza (AI) measures, India's department of animal husbandry, dairying, and fisheries (DAHD) announced import curbs on imported poultry from the US and other countries under the Livestock Act through a Gazette of India notification on 19 July 2011.

The United States complained that India's AI measures amounted to an import prohibition that was not based on the relevant international standard (the OIE Terrestrial Code) or on a scientific risk assessment.

India could appeal against the ruling.

Commerce ministry officials said the government would study the ruling and a decision on appeal against the decision could be taken after getting the view of animal husbandry department.

The ruling could increase imports of poultry products from the United States, although India could still try to restrict them using other measures such as anti-dumping duties if US exporters tried to sell their products at unfairly cheap prices.

In July, India blocked a global trade deal that the WTO hoped would restore its role as a forum for negotiating world trade rules after two decades of inertia, and it has continued to resist US pressure to remove its veto.