US takes India to WTO over export subsidies

FT ONLINE

The United States launched a challenge to Indian export subsidies at the World Trade Organization on Wednesday, saying they hurt US companies by letting Indian exporters sell goods more cheaply, US Trade Representative Robert Lighthizer said.

India provides exemptions from certain duties, taxes and fees that benefit numerous Indian exporters, including producers of steel products, chemicals, pharmaceuticals, textiles and information technology products, Lighthizer’s office said.

“These export subsidy programs harm American workers by creating an uneven playing field on which they must compete,” Lighthizer said in a statement.

“USTR will ... hold our trading partners accountable by vigorously enforcing US rights under our trade agreements and by promoting fair and reciprocal trade through all available tools, including the WTO,” Lighthizer said.

According to Reuters, the office of the USTR said export subsidies provide an unfair competitive advantage to the companies that receive them and are prohibited under WTO rules.

A limited exception to the rule is provided for developing countries until they reach a specific economic benchmark, the USTR office said. It said India was initially within the group of developing countries but surpassed the economic benchmark in 2015.