Case Briefing:

India - Quantitative restrictions on Imports

India had placed complex restrictions on the import of agricultural, industrial and consumer goods from other countries for 50 years prior to this case. Goods placed on the "negative list" could only be imported by special license, which was generally only granted to the "actual user," rather than to firms in the normal chain of distribution. Many goods were only be imported by state agencies. The restrictions were, in many cases, applied arbitrarily and in the discretion of India government officials in a case-by-case basis. As a result, at any given point it is impossible to know what goods might be allowed into the country. Goods imported with license were subject to confiscation or a fine of five times the value of the good. In 1997, the United States brought this complaint at the WTO against India requesting that restrictions on thousands of products be removed. India claimed that without restrictions its foreign exchange would leave the country, upsetting its balance of payments and inhabiting its economic development.

ISSUE:

Rule of law:

Analysis:

Conclusion: