WASHINGTON: The US today challenged Indian export subsidies schemes at theWorld Trade Organisation, saying these programmes harm American workers bycreating an “uneven” playing field, officials said.
The US Trade Representative (USTR) argued that at least half a dozen Indianprogrammes provide financial benefits to Indian exporters, which allow themto sell their goods more cheaply to the detriment of American workers andmanufacturers.
These programs are: the Merchandise Exports from India Scheme; ExportOriented Units Scheme and sector specific schemes, including ElectronicsHardware Technology Parks Scheme, Special Economic Zones, Export PromotionCapital Goods Scheme and Duty Free Imports for Exporters Programme.
“These export subsidy programmes harm American workers by creating anuneven playing field on which they must compete,” said Lighthizer.
“USTR will continue to hold our trading partners accountable by vigorouslyenforcing US rights under our trade agreements and by promoting fair andreciprocal trade through all available tools, including the WTO,”Lighthizer said.
The announcement from Lighthizer came while Indian Foreign Secretary VijayGokhale was on his maiden visit to the US. He was scheduled to holdmeetings with the USTR.
In a statement, the USTR alleged that through these programmes, India isgiven exemption from certain duties, taxes, and fees which benefitsnumerous Indian exporters, including producers of steel products,pharmaceuticals, chemicals, information technology products, textiles, andapparel.
According to the Indian government documents, thousands of Indian companiesare receiving benefits totaling to over $7 billion annually from theseprograms.
The USTR said export subsidies provide an unfair competitive advantage torecipients.