Trade War: US Launches WTO Challenge Of Indian Export Subsidies

The US Trade Representative announced the launch of a WTO challenge to Indian export subsidy programs, in the latest global trade skirmish which is likely to grow into something far bigger.

U.S. LAUNCHES WTO CHALLENGE TO INDIAN EXPORT SUBSIDY PROGRAMS -OFFICE OF U.S. TRADE REPRESENTATIVE

USTR SAYS APPARENT INDIAN EXPORT SUBSIDIES ALLOW INDIAN EXPORTERS TO SELL GOODS MORE CHEAPLY TO DETRIMENT OF U.S. WORKERS, MANUFACTURERS

In a statement on the USTR website, Robert Lighthizer, announced that the United States has requested dispute settlement consultations with the Government of India at the World Trade Organization (WTO) challenging Indian export subsidy programs.

These programs are:

the Merchandise Exports from India Scheme;

Export Oriented Units Scheme and sector-specific schemes, including Electronics Hardware Technology Parks Scheme;

Special Economic Zones;

Export Promotion Capital Goods Scheme;

a duty-free imports for exporters program.

These apparent export subsidies provide financial benefits to Indian exporters that allow them to sell their goods more cheaply to the detriment of American workers and manufacturers.

“These export subsidy programs harm American workers by creating an uneven playing field on which they must compete,” said Ambassador Lighthizer.“USTR will continue to hold our trading partners accountable by vigorously enforcing U.S. rights under our trade agreements and by promoting fair and reciprocal trade through all available tools, including the WTO.”

Trump and Modi in happier times.

The USTR claims that through these programs, India provides exemptions from certain duties, taxes, and fees; reduces import duty liability; and benefits numerous Indian exporters, including producers of steel products, pharmaceuticals, chemicals, information technology products, textiles, and apparel.According to Indian Government documents, thousands of Indian companies are receiving benefits totaling over $7 billion annually from these programs.