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Synopsis and References of the Case

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Chapter Summary

This case posed the fairly classical problem of quantitative restrictions, applied by India to agricultural, textile and industrial products and challenged by the United States. India explained these restrictions as measures justified by its balance-of-payments situation, under Article XVIII:B of the GATT 1994. The Panel found India to be in the wrong, and its findings were upheld by the Appellate Body. However, other important issues were raised by this case, namely, that of the institutional balance between one of the WTO's political organs (the Committee on Balance-of-Payments Restrictions) and the Dispute Settlement Body (DSB), that of the relationship between the WTO and the IMF, and that of the superiority of WTO rules over the commitments made by a WTO Member to another organization. The ramifications of this affair are therefore considerable and heavy with consequences within the emerging panorama of international economic law.

Keywords: agricultural products; Appellate Body; Dispute Settlement Body (DSB); IMF; imports; India; industrial products; quantitative restrictions; textile products; WTO



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