India loses export incentive case filed by US at WTO

US had dragged India to the WTO’s dispute settlement mechanism over New Delhi’s export incentive schemes.

With this ruling, India will have to re-work these incentive

India has lost a case filed by the US at the WTO against domestic export incentives as the dispute settlement panel on Thursday concluded that these schemes are inconsistent with the international trade norms.

With this ruling, India will have to re-work these incentive

Schemes to comply with the WTO ruling. However, it can file an appeal against the ruling at the appellate body of the WTO dispute settlement mechanism.

On March 14 last year, the US had dragged India to the WTO’s dispute settlement mechanism over New Delhi’s export incentive schemes, including Merchandise Exports from India Scheme (MEIS); Export Oriented Units (EOUs) and Export Promotion Capital Goods (EPCG) Scheme; and duty-free imports scheme.

The US had alleged that these schemes were harming Americancompanies.

The dispute panel in its report has concluded that most of these schemes like EOU, Electronics Hardware Technology Parks Scheme; EPCG, and MEIS are inconsistent with certain provisions of WTO’s Agreement on Subsidies and Countervailing Measures.

Source:“https://www.indiatoday.in/business/story/india-loses-export-incentive-case-filed-by-us-at-wto-1614565-2019-10-31”