US, EU Flag QCOs, Non-Tariff Barriers As Concerns In India’s WTO Trade Policy Review

New Delhi, Sept 10 (KNN) The United States and European Union have flagged a range of regulatory and non-tariff barriers in India, including quality-control orders (QCOs), sanitary and phytosanitary (SPS) measures, technical barriers to trade (TBTs), local-content requirements and restrictions on services and digital trade, saying these could limit the benefits of greater economic integration.

The concerns were raised during discussions on India’s eighth Trade Policy Review (TPR) at the World Trade Organization (WTO), where members examined India’s tariffs, regulations and broader trade policies.

The US called on India to reduce tariffs, remove unjustified SPS and TBT measures, ease barriers to services and digital trade, and roll back regulations that discriminate against foreign exporters and investors, reported Business Standard.

QCOs Draw Particular Scrutiny

The EU raised concerns over unpredictable customs procedures, cumbersome SPS requirements, gaps in intellectual property and geographical indications protection, and limited access to government procurement. 

It also flagged India’s growing use of QCOs, warning that conformity requirements based on divergent domestic standards could hinder foreign suppliers’ market access. 

While noting India’s efforts to address the issue following NITI Aayog recommendations, the EU said QCOs risk insulating India from the global economy.

The US welcomed the repeal of some QCOs but said others continued to affect ICT products, medical devices and chemicals. It urged greater stakeholder consultation and less burdensome testing and certification. 

India defended its SPS and technical regulations as necessary to protect public health, food safety, biosecurity and the environment while facilitating legitimate trade.

Services And Digital Trade Remain Concerns

The US criticised local-content requirements across sectors such as ICT, spirits and medical devices, arguing they reduce the competitiveness of imports. 

It urged India to administer measures such as the Import Management System for IT products and refurbished medical devices in line with WTO rules, without mandatory domestic testing or quantitative restrictions.

On services, the US welcomed India’s liberalisation of insurance and legal sectors but said restrictions remain in areas including electronic payments, retail and e-commerce. 

It also welcomed consultations on the Digital Personal Data Protection Rules, 2025, while urging India to avoid restrictions on cross-border data flows and sector-specific data localisation.

India-EU FTA Implementation In Focus

The EU said the recently concluded India-EU free trade agreement, once ratified, could strengthen bilateral trade and investment, but stressed that effective implementation would be crucial, particularly in addressing non-tariff barriers. 

It said commitments must translate into tangible benefits for businesses and traders.

The WTO’s Trade Policy Review mechanism provides for periodic peer reviews of members’ trade policies. India undergoes the review every five years, during which members raise questions and concerns on tariffs, regulations and other trade measures.

(KNN Bureau)