Upholding US Complaint, WTO Says India Export Subsidies Worth $7 bn Illegal

by GoNews Desk 1 year ago Views 1235

The World Trade Organisation has upheld a US complaint against India over its export subsidies. A WTO panel on Thursday ruled that the subsidies were prohibited under trade regulations and gave India between 90 to 100 days to withdraw subsidies to various export schemes amounting to more than $7 billion annually.

The objections by the US related mostly to exemptions from customs duties and GST. The complaint was initiated by the US in March 2018.

In its report, the panel recommended that “India withdraw the prohibited subsidies under DFIS within 90 days from adoption of the Report”. It also asked India to “withdraw the prohibited subsidies under the SEZ Scheme within 180 days from the date of adoption of the Report”


The dispute concerns the United States' challenge of the following schemes maintained by India: 

a. the Export Oriented Units (EOU) Scheme and Sector-Specific Schemes, including the Electronics Hardware Technology Parks (EHTP) Scheme and the Bio-Technology Parks (BTP) Scheme (the EOU/EHTP/BTP Schemes)

b. the Merchandise Exports from India Scheme (MEIS)

c. the Export Promotion Capital Goods (EPCG) Scheme 

d. the Special Economic Zones (SEZ) Scheme; and e. the Duty-Free Imports for Exporters Scheme (DFIS)

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