US Challenge to Indian Export Subsidies at the WTO: What Next?

Several prominent schemes of India’s Foreign Trade Policy (“FTP”) are under challenge by the United States at the World Trade Organization (“WTO”). This dispute is of critical importance to Indian businesses since some of the major export subsidy schemes have been challenged.

At stake is loss of annual benefits worth nearly $7.5 billion to the Indian industries. A full-fledged WTO dispute has been initiated in Geneva. Going by past trends, the ruling by the WTO panel is likely to be released in the first half of 2019.

These schemes under challenge by the United States are:

• Export Oriented Units Scheme and sector specific schemes, including Electronics Hardware Technology Parks Scheme and Bio-Technology Parks Scheme;
• Merchandise Exports from India Scheme;
• Export Promotion Capital Goods Scheme;
• Special Economic Zones; and
• Duty Free Imports for Exporters

Numbers indicate how important these schemes are in supporting Indian exports, in particular, on steel products, pharmaceuticals, chemicals, information technology products, textiles, and the apparel sector. For instance, exports from Special Economic Zones account for over 30% of India’s total export volume.

The United States alleges that these schemes grant subsidies in a manner which runs afoul WTO law.

As Indian businesses ramp up efforts to increase their presence in foreign markets, this dispute bring with it a lot of potential anxiety to domestic industries since existing government support mechanisms for exports may be revised or removed in entirety. The Government of India had reportedly set up internal committees to review the FTP and propose WTO-consistent subsidy frameworks.

In our special webinar, Mr. Sanjay Notani, Mr. Jignesh Ghelani, Mr. Parthsarathi Jha and Mr. Rishab Raturi will discuss issues relating to:

• What is at stake under the WTO dispute relating to export subsidies?
• How this dispute will affect your business?
• What are the primary sectoral threats and potential mitigating strategies?
• What strategic planning and execution should businesses undertake at this time?

Our WTO law and policy experts will also answer any specific queries that you may have.

We look forward to your participation for this special webinar on 20 September, 2018 at 4:00 pm (IST).

We look forward to your valued participation.

Please register by clicking on the link – https://elplaw.webex.com/elplaw/onstage/g.php?MTID=eff96d76b7b3992ff4c09f0a1ac6606b0

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