India’s Export Promotion Programmes have now come under the global scanner and might face a complete suspension if found prohibited by World Trade Organisation (WTO)
The WTO on Monday based on US’ request referred Washington’s complaint on India’s export promotion schemes to the Dispute Settlement Body by establishing a panel to look expeditiously in the matter.
US had filed a complaint with WTO on account of failing to find a mutually agreed solution within stipulated 30 days to India’s export promotion programmes.
An official concerned with the matter told ET,
A panel has been established in the DSB today under accelerated timelines of the agreement on subsidies and countervailing measures (SCM) on our export-related measures.
With the SCM report filed, the panel will have to circulate the report to all WTO members within 90 days of its composition and the establishment of its terms of reference.
Meanwhile, an expert at WTO has said that “We have a smaller time period for compliance and if any subsidies are found to be prohibited, then we will have to stop them as soon as possible. This is difficult.”
To recap, US had earlier dragged India to WTO on account of violating its commitments under the ASCM in five of its most used export promotion schemes:
- Export-oriented units scheme (including electronic hardware technology parks scheme)
- Merchandise exports from India scheme
- An export promotion capital goods scheme
- Special economic zones
- Duty-free import authorisation scheme
Meanwhile, it is alleged that despite that fact India was exempted under the WTO’s special and differential provisions for developing countries in 2015, New Delhi went ahead with increasing scope of the programme.