U.S. challenges Indian export programmes at WTO

U.S. challenges Indian export programmes at WTO

Context

Indo-US trade disputes

What has happened?

United States has challenged India’s export subsidy programmes at the World Trade Organisation (WTO)

Backdrop

The move comes after a recent string of statements accusing India of “unfair” trade practices, by President Donald Trump

How this dispute is different from earlier ones?

This move is broad and sweeping, as it targets whole range of Indian export subsidy programmes unlike earlier ones which used to be product or sector specific

• The U.S. and India regularly use the World Trade Organization as a platform to resolve trade disputes. Per the WTO website, there appears to be 16 active cases, with the U.S. being the complainant in 6, and the respondent in 10
• However, most of these disputes are for a product or group of products, and less about India’s larger policy programmes. That has changed with the current dispute initiated by the United States, which raises concerns about multiple wider trade programs issued by the Indian government

Which schemes and programmes have been challenged?

US has listed the following schemes as distorting trade in a way that allows Indian exporters to sell their goods more cheaply to the detriment of American workers and manufacturersby creating an uneven playing field on which they must compete

• Merchandise Exports from India Scheme
• Export Oriented Units Scheme
• Electronics Hardware Technology Parks Scheme
• Special Economic Zones
• Export Promotion Capital Goods Scheme
• a duty free imports for exporters programme