India, US to hold consultations on Apr 11 on Export subsidies

Posted by Daily Shipping Times on 05-04-2018        Tweet

NEW DELHI: India and the US will hold bilateral consultations on April 11 in Geneva to deliberate upon the case filed by the Trump administration in the WTO, alleging that export incentives were harming American companies, an official said.

The consultations would be held under the aegis of World Trade Organization's (WTO) dispute settlement mechanism. Special Secretary Level Officer from the Commerce Ministry will lead the team.

The US is expected to seek more details about the export incentives by India, the Government official said.

America has challenged India's export subsidy programmes such as Merchandise Exports from India Scheme in the WTO, asserting that these initiatives harm its companies by creating an uneven playing field. The US in its statement said that thousands of Indian companies are receiving benefits totalling over USD 7 billion annually under various export promotion programmes.

Export subsidy programmes: the Merchandise Exports from India Scheme; Export Oriented Units Scheme and sector specific schemes, including Electronics Hardware Technology Parks Scheme; SEZ; Export Promotion Capital Goods Scheme; and duty free imports have been challenged by US Trade Representative (USTR) Robert Lighthizer. These export subsidy programmes harm American workers by creating an uneven playing field on which they must compete, the USTR had said.