India is likely to join as an observer of the WTO agreement on government procurement signalling that it would subject its multi-billion dollar state purchases to the multilateral rules, a move that is sure to raise hackles of the Opposition.

The United States has won a case against China at the World Trade Organisation which has ruled that it is illegally restricting imports of movies, music and books into the country.

The political differences between India and China notwithstanding, the two countries are working in unison at the World Trade Organisation.

The United States and China huddled Thursday for key talks on trade disputes, clean energy and climate change less than three weeks before a visit by US President Barack Obama.

The European Union has warned that it will drag India to the World Trade Organisation if New Delhi does not slash taxes on wines and spirits imported from Europe.