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    The United States Is Extremely Dissatisfied With The Export Subsidies For India'S Textile Industry.

    2012/11/13 10:27:00 19

    TextilesIndia TextileClothing Export

    Recently, at a conference on subsidies and countervailing measures held in Geneva, India made it clear that India

    Spin

    product

    Without contempt for any WTO regulation, India still needs to clarify its obligations and gradually abolish subsidies.

    However, there is no problem with bilateral discussions between India and other countries.


    But now the United States has accused India of being wrong.

    textile industry

    The United States also complained to WTO that India has ignored bilateral discussions on this issue.


    Turkey also expressed dissatisfaction with the growth of India's textile exports, claiming that India's product subsidies had led to losses in Turkey's exports.

    However, New Delhi refused these accusations.


    A India government official said: "WTO's agreement on subsidies and countervailing measures allows export subsidies to countries whose per capita income is less than US $1000, until the share of world trade in specific commodities is higher than 3.25%."


    It is understood that in 2007, India textile accounted for more than 3.25% of the world market share, which is now about 4%.

    Since these countries allow subsidies to be abolished in 8 years, India will abolish subsidies until 2015.


    The United States is concerned about the increased quotas. The India government recently subsidized the textile sector to help exporters fight the global economic slowdown.

    These include export incentives for key products and key markets for export textiles, cash subsidies for export value of 2%~3%, subsidies for exports to specific destinations, and specific export products.


    Last year, the India government announced an export to the European Union.

    American market

    Of

    clothing

    The product promotion plan was also extended to the end of the fiscal year.


    India

    Garment export

    It is the eighth largest export product of the country, and exports fell 19.46% to 3 billion 410 million US dollars in the first 5 months of the fiscal year.

    Cotton yarn,

    cloth

    Exports of finished goods decreased by 3% to 2 billion 800 million US dollars.


    However, the target of textile exports in 2012~2013 was set at $40 billion 500 million, an increase of about 22% over the previous year.


    India's commerce ministry official said: "India must first reach a consensus on these issues according to its WTO agreement obligations, and discuss with WTO officials and interested members at any time.

    However, we do not want to be forced to take hasty actions.

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