Govt may have to stop export subsidies within the next nine months

Trade experts have said India's position is weak, with no historical precedent for a country winning a reprieve from the WTO on this matter

There is a possibility of the government having to stop export subsidies within the next nine months, if it happens to lose the trade dispute registered by its American counterpart at the World Trade Organization (WTO).

Last month, US trade representative Robert Lighthizer’s office challenged India at the WTO over the entire spectrum of its export promotion schemes. The allegation is that they provide undue benefit, against WTO rules, for Indian exporters.

“Timelines for a prohibited subsidy dispute are normally half of the other disputes. The only way it could go on beyond nine months is if the issue gets appealed. We