2010&Nbsp; WTO Provides Export Subsidies To India Textile And Garment Enterprises.

2010/6/3 9:28:00 17

American

Trade protectionism

Tendency to rise again, the United States asked the World Trade Organization (WTO) to examine whether India could provide export subsidies to textile and garment enterprises.

However, India has expressed confidence that India's subsidies for textile exporters are mostly short-term subsidies and are not within the challenge of multilateral forums.

The United States recently submitted a document to the WTO Committee on subsidies and countervailing measures (SCM), saying that the United States has reason to believe that certain of India

product

It already has the export competitiveness defined by the SCM agreement.

The agreement stipulates that the members of developing countries (per capita income of less than $000) are not subject to the prohibition of export subsidies, as long as exports of certain products are less than 3.25% of world trade for two consecutive years.

The documents submitted by the United States require the Secretariat (WTO) to calculate the export competitiveness of India's textiles and clothing exports in accordance with Article 27.6 of the SCM agreement.

According to a government official, because most of the subsidies provided by the central government to exporters are short term subsidies, the US threat to India's exports is very small.

Now that things are at an early stage, he said, "we will continue to pay attention to how things develop."

Calculations show that in 2008, India

Textiles and clothing

Exports amounted to US $21 billion, accounting for 3.4% of US $612 billion in Global trade.

But in 2009, India textile exports to the European Union and the United States (plus more than half of India's textile and clothing exports) decreased due to a serious slowdown in demand.