India Challenges Indonesia Against Cotton Yarn Import Restrictions In WTO

New Delhi, Jun 3 (KNN) India has formally challenged Indonesia's proposed import restrictions on cotton yarn through the World Trade Organisation, seeking consultations under established WTO procedures.

The dispute centres on Indonesia's extension of safeguard measures that would limit cotton yarn imports, which India contends could harm its textile export interests.

According to a WTO communication filed by India, the country has requested consultations with Indonesia regarding the Southeast Asian nation's decision to extend safeguard measures on cotton yarn imports.

The request follows Indonesia's notification to WTO members on May 24 through the Committee on Safeguards, in which the country cited serious threats to its domestic cotton yarn manufacturing sector as justification for the trade protection measures.

Indonesia's notification outlined concerns about potential damage to local cotton yarn producers, prompting the government to propose continued safeguard measures against imports of the textile material.

These measures are designed to provide temporary protection to domestic industries facing increased foreign competition that could cause significant economic harm.

As a major exporter of textile products, India has invoked provisions under the WTO's Agreement on Safeguards to formally review Indonesia's decision and engage in discussions about the trade restriction's extension.

The consultation process represents a standard mechanism within WTO framework for member countries to address trade disputes before they escalate to formal litigation.

India has proposed conducting the consultations through virtual meetings scheduled between June 10 and June 13, though both countries remain open to alternative dates that accommodate mutual scheduling preferences.

The consultation period will provide both nations an opportunity to present their positions and potentially reach a negotiated resolution to the trade dispute.

(KNN Bureau)