Nov. 1/2019 – In a hearing to the allegation of the USA over India’s export policy, the World Trade Organization (WTO) ruled in favor of the former recommending the latter to scrap the prohibitory clauses within 90 to 180 days, effective from the date of the formal adoption of the ruling.
On March 14 last year, the USA had dragged India to WTO over New Delhi’s export-incentive schemes, under which domestic firms are given specific favors. The North American country had alleged that India’s export policies are discriminatory.
In its ruling, the global trade watchdog said, “The dispute panel rejected India’s claim that it was exempted from the prohibition on export subsidies under the special and differential treatment provisions of the WTO’s Agreement on Subsidies & Countervailing Measures (SCM).”
However, India has the options to challenge the ruling within one month before an appellate body, the court that monitors the global trade disputes. Further, according to an official closer to the matter said, India would very soon challenge the ruling.