US drags India to WTO over six export subsidy schemes |
The Trump administration has mounted a fresh offensive against India by dragging it to the World Trade Organisation (WTO) for providing what it termed as export subsidies through half-a-dozen schemes, including SEZs and the Merchandise Exports from India Scheme. In its request to hold consultations with India, the first step before legal action, the US has argued that the incentives violate WTO agreements as India is no longer below the economic benchmark of $1,000 per capita gross national income (GNI). These export subsidy programmes harm American workers by creating an uneven playing field on which they must compete. USTR will continue to hold US trading partners accountable by vigorously enforcing US rights under its trade agreements and by promoting fair and reciprocal trade through all available tools, including the WTO. The US has estimated the quantum of incentives offered by India at $7 billion. Indian authorities said they would respond to the US request for consultations within the specified 60 days, they argued that like other countries in the past, India should be allowed a transition period of eight years. When the WTO was set up, developing countries that had a GNI of over $1,000 per capita were allowed eight years to wind up their export promotion schemes.
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