Home / Knowledge / News / Textiles / US files complaint against Indian textile export subsidies
US files complaint against Indian textile export subsidies
30
Oct '12
The US in a complaint has accused India of wrongfully continuing and also providing fresh export subsidies to its textile export industry, instead of eliminating them, in clear contravention of trade rules of the World Trade Organisation (WTO). The US has mainly targeted Export Promotion Capital Goods (EPCG) scheme and the ‘Focus Markets’ and ‘Focus Products’ scheme which were provided to fight the worldwide slowdown in textile and apparel exports.
 
"As per rules of the WTO, a country with per capita income below US $1000 is permitted to give export subsidies to a particular sector, till exports from that sector are less than 3.25 percent of world trade in that sector and India crossed that threshold limit five years back”, Mr DK Nair – Secretary General of the Confederation of Indian Textile Industry said while speaking to fibre2fashion.
 
Explaining further he said, “However there is ambiguity as to the implementation period of the withdrawal of the subsidies. The implementation period can extend up to eight years, but there is no clarity on whether it will begin from the year India crossed the threshold limit or from the day a complaint is filed or from the day the complaint is resolved. Also, it is up to India to decide which subsidies to withdraw within the eight-year window.
 
“Secondly, India does not need to withdraw all incentives and subsidies. Those subsidies have to be conditional to exports. The main subsidy which may be affected is the ‘Focus Market’ scheme under which 2-3 percent cash incentives were provided. Also under the scanner is the special market-linked focus products scheme to promote apparel industry exports to the US and EU markets, which has been extended to the current fiscal year.
 
“The EPCG scheme which is also extended to promote exports of capital goods could also face the axe. Those schemes which are not specifically export targeted will not be affected. Example could be the hugely successful TUFS, which is not directly related to exports and is given to those irrespective of, whether they are selling in domestic or export markets”, he wound up this very informative chat by saying.

 

 

 

 

 

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 23rd Mar 2017

South Korean Samil Spinning acquires Buhler Quality Yarns

South Korean yarn producer Samil Spinning has acquired US based...

Apparel/Garments | On 23rd Mar 2017

E-retailers to pay up to 1% TCS under GST

E-retail marketplaces will need to deduct up to 1 per cent tax...

Textiles | On 23rd Mar 2017

Lanxess to expand chemical intermediates capacity

The Advanced Industrial Intermediates business unit of German...

Interviews View All

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search