China, Russia, Japan, the European Union (EU) and eight other nations have come out in support of an US complaint at the World Trade Organisation (WTO) against India’s export promotion schemes. The United States earlier challenged most of India’s export programmes at the WTO, claiming the subsidies worth $7 billion would harm its workers.

The United States cited the Agreement on Subsidies and Countervailing Measures (ASCM) for its argument. These countries, which include Brazil, Canada, Kazakhstan, South Korea, Sri Lanka, Taiwan and Thailand, have joined the dispute as third parties, according to a report in a top Indian business daily.

Former commerce secretary Rita Teaotia has said it was possible that India could lose the trade dispute.

China, Korea, Japan and Thailand are members of the Regional Comprehensive Economic Partnership (RCEP) trade agreement along with India and have been pressuring it for deep duty cuts on at least 90 per cent of the traded goods. Sri Lanka too wants to benefit from India losing its export incentives as it is a competitor, according to the report.

The WTO has set up a panel as the two sides could not find a mutually agreed solution through discussions. India is reportedly under pressure to prepare its defence after the setting up of the panel. (DS)

Fibre2Fashion News Desk – India

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