GENEVA — An evaluation by the World Trade Organization, following a request by the U.S., has determined that some Indian textile and apparel products may no longer qualify for export subsidies because they meet competitiveness criteria.
While most government export subsidies are prohibited under WTO rules, there are exceptions that allow the world’s poorest nations and some developing countries, including India, to use such financial supports if they meet certain conditions.
But the same criteria stipulate that developing nations such as India can no longer benefit from the exemption from the subsidy prohibition if they have reached export competitiveness in a product. This would occur if exports of a product have reached a 3.25 percent share of world trade for two consecutive years and would subsequently require India to gradually phase out any export subsidies on such products over a period of eight years.
Products found to have met the threshold include woven cotton fabrics, woven fabric of synthetic yarn, men’s and boys’ knitted or crocheted shirts, women’s and girls’ blouses and shirts, T-shirts and vests, and women’s and girls suits, ensembles, jackets, blazers, dresses, skirts, panties, slips, petticoats, briefs, nightdresses and bathrobes.
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A spokeswoman for the U.S. Trade Representative said, “We did get the computation back from the WTO and are reviewing it.”
A senior Indian trade diplomat said the WTO assessment had been sent back to the capital for analysis.