India Challenges Indonesia's Cotton Fabric Duty at WTO

New Delhi, Sep 22 (PTI) India on Monday sought consultations with Indonesia under the World Trade Organisation's (WTO) safeguard agreement over Jakarta's proposal to impose import duty on cotton fabric.

In a communication to the WTO, India has stated that it has substantial trade interest in the export of this fabric.

"India hereby requests consultations with Indonesia," it said.


The WTO allows its members to impose safeguard measures, which is a temporary duty, to protect domestic industry from a sudden surge in imports. However, imposition of this duty or measure is preceded by a probe.

"India would like to propose that consultations... take place virtually on 23 September to 26 September 2025 or on a mutually convenient date and time," it said.

The Committee on Safeguards has circulated to WTO members a notification dated September 16, 2025 by Indonesia concerning finding of serious injury or threat thereof to the domestic industries producing cotton fabric and a notification of proposed safeguard measure in the form of specific duty against the importation of these goods.

India exported cotton fabrics worth USD 8.73 million in 2024 as against USD 6.73 million in 2023.