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31 May 2018

WTO establishes panel to examine certain Indian export measures

WTO has on 28th of May, 2018 established panel to examine certain Indian export measures which according to the United States of America are export subsidies in violation of WTO's Agreement on Subsidies and Countervailing Measures.

US claims that India provides subsidies contingent upon export performance, and that these programs are inconsistent with Article 3.1(a) of the SCM Agreement, and that India appears to have acted inconsistently with Article 3.2 of the said Agreement.

Earlier, USA had in March this year requested for consultations with India concerning alleged subsidies provided by India through five of its programmes, namely, the Export Oriented Units (EOU) Scheme including Electronics Hardware Technology Parks Scheme, the Merchandise Exports from India Scheme (MEIS), the Export Promotion Capital Goods (EPCG) Scheme, Special Economic Zones (SEZ), and a duty-free import for exporters program.

EU, Canada, China, Egypt, Japan, Kazakhstan, Korea, Russia and Sri Lanka have reserved their third-party rights to participate in the panel proceedings.