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US appeals to WTO against Indian textile subsidies
04
Mar '10
The US has recently sent a complaint to the World Trade Organization (WTO), asking the body to examine the export subsidies given by India to its textile and garment sector.

The US has requested the WTO to calculate the export competitiveness of textile and apparel exports from India, in accordance with Article 27.6 of the SCM Agreement.

However, Indian exporters are of the opinion that these subsidies have been given to tide over the slowdown and they do not attract the relevant provisions of the WTO act under which the US has given the complaint.

They are also of the opinion that the complaint will not affect Indian textile and clothing exports as by the time, the WTO takes up the probe, the Indian government would have rolled back the subsidies.

The subsidies which were given to Indian textile exporters include, discount on interest on loans and incentives for exporting to particular markets in the form of duty-free import scrips.

Fibre2fashion News Desk - India


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