Source: India to take EU dispute to WTO

India will launch a formal dispute against the EU at the WTO over seizures of Indian generic drugs, a senior trade ministry source said on Tuesday, as quoted by Reuters. Settling the dispute could take between 12-18 months, another ministry source who deals directly with WTO issues tells the news service.

According to CNBC-TV18, India and Brazil are likely to join against the EU at the WTO. Consultation is the initial process of dispute settlement at the WTO. New Delhi had said it wanted to solve the dispute "amicably," but there has been no breakthrough so far between India and its largest trading partner.

"As far as we are concerned, it's a violation of TRIPS and needs to be taken to the WTO," the senior trade ministry source said, referring to the international trade agreements. "[The] Pharma issue will go to the WTO. India is not satisfied by what is happening in the European Union," the source added.

Therapies for AIDS, Alzheimer's disease, heart conditions and other ailments have been seized by customs agencies of the EU bloc on several occasions while in transit to Latin American countries, according to a NASDAQ statement. The move comes despite an earlier statement by the European Commission that the EU had taken the drug seizures "very seriously" and implemented measures to prevent further incidents, Reuters notes.

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