China may contest India's toy import ban in WTO: Report

China is likely to drag India to the World Trade Organisation challenging the ban by New Delhi on Chinese toys, a media report said on Wednesday.

"The Chinese government is mulling a response to India's recent ban on Chinese toy imports and will probably ask the World Trade Organisation to investigate whether the ban violates WTO laws," the China Daily said quoting an anonymous source close to the issue.

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India had banned import of Chinese toys on January 23 for six months. While the Directorate General of Foreign Trade (DGFT) in the Indian Commerce Ministry did not cite any reason for the ban, officials said the prohibition was necessary to protect kids from toxic hazards that may be associated with Chinese toys.

However, it is perceived here that ban by New Delhi was aimed at providing protection to the domestic industry from the Chinese manufacturers which claimed at least half of Rs 2,500 crore Indian toy market.

"It is a sign that China will be leveraging WTO rules to help protect its manufacturers from illegal trade barriers and punitive measures by its trading partners at a time when protectionism is growing amid the global economic recession," the newspaper said.

posted under - WTO updates, ban on toys, chinese toys banned, indian economy updates, ban on chinese toys
source - www.economictimes.com