Skip to main content

India may have to End Export Promotion Plans If WTO Objects

By
India may have to End Export Promotion Plans If WTO Objects
Panel set up by WTO’s Dispute Settlement Body to look expeditiously into US complaint on subsidies
India’s export promotion programmes have come under the global trade watchdog’s scanner and would need to be stopped if found prohibited as per the World Trade Organisation (WTO) norms. The WTO on Monday referred a US complaint against India’s export promotion schemes to the Dispute Settlement Body (DSB) by establishing a panel to look expeditiously into the matter.
Failing to find a mutually agreed solution in the stipulated 30 days to India’s export promotion programmes, which Washington claims harm American workers, the US had requested the establishment of a panel more than 10 days ago.“A panel has been established in the DSB under accelerated timelines of the agreement on subsidies and countervailing measures (SCM) on our export-related measures,” an official privy to the details told ET.
The SCM agreement provides for accelerated procedures with several shorter time-periods. Further, the panel has to circulate its report to all WTO members within 90 days of the date of its composition and the establishment of its terms of reference.
“This means we have smaller time period for compliance and if any subsidies are found to be prohibited, then we will have to stop them as soon as possible. This is difficult,” said an expert on WTO issues.India can appeal to the Appellate Body in case the findings of the panel’s report are not in its favour. However, India would have to scrap whichever schemes the Appellate Body finds violating norms.
Pegging the quantum of subsidies at USD 7 billion, the US had in March dragged India to WTO for violating commitments under the ASCM in five of its most used export promotion schemes—the export-oriented units scheme and sector-specific schemes including electronics hardware technology parks scheme, merchandise exports from India scheme, export promotion capital goods scheme, special economic zones and duty-free import authorisation scheme.It alleged that despite the expiry of India’s exemption under the WTO’s special and differential provisions for developing countries in 2015, Delhi has increased the size and scope of these programmes.
The agreement envisages the eventual phasing out of export subsidies and provides eight years for graduating countries (least developed and developing), which cross the USD1,000 mark at 1990 exchange rate to phase out export subsidies. Under existing WTO rules, a country can no longer offer export subsidies if its per-capita GNI has crossed USD 1,000 for three years in a row.

The Economic Times, New Delhi, 30th May 2018

Comments

Post a Comment

Popular posts from this blog

RBI deputy governor cautions fintech platform lenders on privacy concerns during loan recovery

By
  India's digital lending infrastructure has made the loan sanctioning system online. Yet, loan recovery still needs a “feet on the street” approach, Swaminathan J, deputy governor of the Reserve Bank of India, said at a media event on Tuesday, September 2, according to news agency ANI.According to the ANI report, the deputy governor flagged that fintech operators in the digital lending segment are giving out loans to customers with poor credit profiles and later using aggressive recovery tactics.“While loan sanctioning and disbursement have become increasingly digital, effective collection and recovery still require a 'feet on the street' and empathetic approach. Many fintech platforms operate on a business model that involves extending small-value loans to customers often with poor credit profiles,” Swaminathan J said.   Fintech platforms' business models The central bank deputy governor highlighted that many fintech platforms' business models involve providing sm
Post a Comment
Read more

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the rep
Post a Comment
Read more

India can't rely on wealthy to drive growth: Ex-RBI Dy Guv Viral Acharya

By
  India can’t rely on wealthy individuals to drive growth and expect the overall economy to improve, Viral Acharya, former deputy governor of the Reserve Bank of India (RBI) said on Monday.Acharya, who is the C V Starr Professor of Economics in the Department of Finance at New York University’s Stern School of Business (NYU-Stern), said after the Covid-19 pandemic, rural consumption and investments have weakened.We can’t be pumping our growth through the rich and expect that the economy as a whole will do better,” he said while speaking at an event organised by Elara Capital here.f there has to be a trickle-down, it should have actually happened by now,” Acharya said, adding that when the rich keep getting wealthier and wealthier, they have a savings problem.   “The bank account keeps getting bigger, hence they look for financial assets to invest in. India is closed, so our money can't go outside India that easily. So, it has to chase the limited financial assets in the country and
Post a Comment
Read more