WTO rules in favour of US in dispute over India’s export subsidies
01 Nov 2019
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A World Trade Organisation (WTO) panel ruled on Thursday that Indian export subsidies are prohibited and should be removed, upholding a complaint brought by the United States.
The panel largely agreed with US claims challenging export subsidies granted in the form of exemptions from customs duties and a national tax, while rejecting some US arguments. It called on India to withdraw the export-contingent subsidies within periods varying from 90 to 180 days.
The US Trade Representative's Office, in a statement, said that the panel had agreed that India provides prohibited subsidies to Indian exporters worth more than $7 billion annually, including to producers of steel products, pharmaceuticals, chemicals, IT products and textiles.
On 14 March 2018, the United States requested consultations with India concerning certain alleged export subsidy measures that it claimed to be inconsistent with WTO provisions.
On 23 March 2018, Canada and the European Union requested to join the consultations. Subsequently, on 17 May 2018, the United States requested the establishment of a panel.
At its meeting on 28 May 2018, the DSB established a panel. Brazil, Canada, China, Egypt, the European Union, Japan, Kazakhstan, Korea, the Russian Federation, Sri Lanka, Chinese Taipei and Thailand reserved their third-party rights.
On 16 July 2018, the United States requested the Director-General to compose the panel. On 23 July 2018, the Director-General composed the panel.
On 3 December 2018, the chair of the panel informed the DSB that the beginning of the panel's work had been delayed as a result of a lack of available resources in the secretariat, and that the panel expected to issue its final report to the parties not before the second quarter of 2019.
On 31 October 2019, the panel circulated its report to members.
