WTO backs US in trade dispute, says India's export subsidies illegal

The US has also cornered India at the multilateral platform, stating WTO rules prohibit middle-income nations from providing market distorting export subsidies at all

The World Trade Organization (WTO) has ruled against India in a crucial trade dispute with the US, ordering all export promotion schemes to be stopped within the next four months. The WTO also said the SEZ Scheme should be closed within the next six months. 

“We recommend that India withdraw the prohibited subsidies under the export oriented units (EOU), electronics hardware technology park (EOT), bio-technology parks (BTP) scheme, Export Promotion for Capital Goods (EPCG) scheme, and the Merchandise Exports from India Scheme (MEIS), within 120 days from adoption of the report,” the WTO’s dispute settlement body ruled on Thursday. 

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