India Seeks WTO Talks on Indonesia's Cotton Fabric Import Duty

India has requested consultations with Indonesia through the WTO regarding Jakarta's plan to impose import duty on cotton fabric. India, a major exporter of this material, aims to discuss the measure, which Indonesia argues protects their domestic industry from rising imports, through a virtual consultation.

India is pressing for talks with Indonesia under the World Trade Organisation's (WTO) safeguard agreement over plans by Jakarta to levy import duties on cotton fabric. This move underscores India's significant trade stake in this market segment.

Indian authorities reached out to the WTO, emphasizing the importance of the issue, and proposed holding virtual consultations from September 23 to 26, 2025. The WTO allows temporary safeguard measures to protect domestic industries from unexpected import spikes, providing these are preceded by thorough investigations.

Indonesia reported a significant threat to its cotton fabric industry, prompting the proposed safeguard duty strategy. India's export figures for 2024 stood at USD 8.73 million, up from USD 6.73 million in 2023, highlighting its vested interest in maintaining market access.

(With inputs from agencies.)