WTO non-compliant subsidies: Impact on Indian apparel exporters

Abstract

Why the government and export promotion councils have not taken any measures to have design alternative and "smart subsidies" for the industry in 2017, which could have been WTO compliant. Recently the United States (US) has threatened to drag India to the World Trade Organization (WTO) for providing export subsidies in a number of sectors, including apparel. While the Indian government is contemplating the idea of challenging the US in the WTO, it is important to understand whether India has a strong ground for challenging and if not how such measures is going to impact one of India’s key export items. Data shows that India’s export of apparel to the world between April 2017 and January 2018 was $13,783.4 million. India has acquired export competitiveness in the textiles and apparel sector by crossing the threshold of 3.25 per cent share of global exports in 2010. Therefore, if export linked subsides are given to this sector it can be countervailed by the receiving country. Some experts are of the view that India will get an eight year period for phasing out subsidies but the export data clearly shows that from 2010 the window of eight years is getting over in 2018. Read more at: https://www.forbesindia.com/article/iim-bangalore/wto-noncompliant-subsidies-impact-on-indian-apparel-exporters/49911/1