NEW DELHI: India suffered a setback at the World Trade Organization
(WTO) in a dispute against the US that had challenged its key export
subsidy schemes including the one for special economic zones. The WTO
has ruled that these export subsidy programmes violated provisions of
the trade body’s norms. New Delhi is likely to appeal the ruling before
the organisation’s Appellate Body, officials said.
A dispute panel in the WTO ruled that these export subsidy programmes
provided by the Indian Government violated provisions of the trade
body’s norms.
“The dispute panel rejected India's claim that it was exempted from the
prohibition on export subsidies under the special and differential
treatment provisions of the WTO's Agreement on Subsidies &
Countervailing Measures (SCM),” the panel said in its ruling.
The other affected schemes are - Merchandise Exports from India Scheme
(MEIS), Export Oriented Units Scheme and sector specific schemes,
including Electronics Hardware Technology Parks Scheme and
Bio-Technology Parks Scheme; Export Promotion Capital Goods Scheme; and
Duty-Free Imports for Exporters Scheme.
“According to the Indian Government, thousands of Indian companies are
receiving subsidies totaling over $7 billion annually from these
programs, and India has increased the size and scope of these
programmes,” office of US Trade Representative said in a statement.
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