US officials claimed victory against India today when the World Trade Organization upheld US rules for determining textiles’ countries of origin. The decision will likely keep India from exporting more textiles to the US.

The disagreement began in January 2002 when India filed a formal complaint stating that its exports of unfinished cotton fabrics treated or dyed in the US should not be counted as part of its export quota. India argued that it was being discriminated against because the country of origin of silk fabric imported into the US is determined by where the silk is finished and dyed, not harvested raw.
The WTO said that the differing US regulations were not in violation of WTO rules.

India can appeal the WTO’s decision.

(From AFP)