WASHINGTON: The United States has taken Indian government to the WorldTrade Organisation over the export subsidies.

US today challenged Indian export subsidies schemes at the World TradeOrganisation, saying these programmes harm American workers by creating an’uneven’ playing field, officials said.

The US link> Trade Representative (USTR)argued that at least half a dozen Indian programmes provide financialbenefits to Indian exporters, which allow them to sell their goods morecheaply to the detriment of American workers and manufacturers.

These programs are: the Merchandise Exports from Indialink>Scheme; Export Oriented UnitsScheme and sector specific schemes, including Electronics HardwareTechnology Parks Scheme, Special Economic Zones, Export Promotion CapitalGoods 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 link> rights under our tradeagreements and by promoting fair and reciprocal trade through all availabletools, including the WTO,’ Lighthizer said.

The announcement from Lighthizer came while Indian Foreign Secretary VijayGokhale was on his maiden visit to the USlink> . He was scheduled to hold meetingswith the USTR.

In a statement, the USTR alleged that through these programmes,Indialink> is given exemption from certainduties, taxes, and fees which benefits numerous Indian exporters, includingproducers of steel products, pharmaceuticals, chemicals, informationtechnology products, textiles, and apparel.

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.