Indian export subsidy hurting American firms: US complains at WTO

Agencies
March 15, 2018

Washington, Mar 15: The US on Wednesday challenged Indian export subsidy schemes at the World Trade Organisation, saying these programmes harm American workers by creating an "uneven" playing field, officials said.

The US Trade Representative (USTR) argued that at least half a dozen Indian programmes provide financial benefits to Indian exporters, which allow them to sell their goods more cheaply to the detriment of American workers and manufacturers.

These programs are: the Merchandise Exports from India Scheme; Export Oriented Units Scheme and sector specific schemes, including Electronics Hardware Technology Parks Scheme, Special Economic Zones, Export Promotion Capital Goods Scheme and Duty Free Imports for Exporters Programme.

"These export subsidy programmes harm American workers by creating an uneven playing field on which they must compete," said Lighthizer.

"USTR will continue to 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.

The announcement from Lighthizer came while Indian Foreign Secretary Vijay Gokhale was on his maiden visit to the US. He was scheduled to hold meetings with the USTR.

In a statement, the USTR alleged that through these programmes, India is given exemption from certain duties, taxes, and fees which benefits numerous Indian exporters, including producers of steel products, pharmaceuticals, chemicals, information technology products, textiles, and apparel.

According to the Indian government documents, thousands of Indian companies are receiving benefits totaling to over $7 billion annually from these programs.

The USTR said export subsidies provide an unfair competitive advantage to recipients.

A limited exception to this rule is for specified developing countries that may continue to provide export subsidies temporarily until they reach a defined economic benchmark.

India was initially within this group, but it surpassed the benchmark in 2015. India's exemption has expired, but India has not withdrawn its export subsidies, USTR alleged.

"In fact, India has increased the size and scope of these programs," USTR charged.

For example, India introduced the Merchandise Exports from India Scheme in 2015, which has rapidly expanded to include more than 8,000 eligible products, nearly double the number of products covered at its inception, it alleged.

Exports from Special Economic Zones increased over 6,000 per cent from 2000 to 2017, and in 2016, exports from Special Economic Zones accounted for over $82 billion in exports, or 30 per cent of India's export volume.

Exports from the Export Oriented Units Scheme and sector specific schemes, including Electronics Hardware Technology Parks Scheme, increased by over 160 per cent from 2000 to 2016, it asserted.

Noting that consultations are the first step in the WTO dispute settlement process, The USTR said if the US and India are not able to reach a mutually agreed solution through consultations, it may request the establishment of a WTO dispute settlement panel to review the matter.

The House Ways and Means Committee Chairman Kevin Brady applauded the USTR's decision to challenge through the WTO.

"The Administration's decision to challenge India's USD7 billion worth of prohibited subsidies is a plain and unmistakable signal that we will not tolerate any failure by our trading partners to live up to their commitments at the expense of US manufacturers, service providers, farmers, and ranchers," Brady said.

"Today's action highlights the value of ensuring that our trade agreements are fully enforceable through binding dispute settlement. We must continue to hold our trading partners accountable and ensure a level playing field for American workers and businesses," he said.

"In responding to India's prohibited subsidisation of its steel industry in this manner, we prove the significance of the WTO dispute settlement process as a powerful, valuable, and appropriate tool in the administration's toolbox to address unfair practices that hurt our steel workers and companies. I join the Administration in calling on India to end its unfair trading immediately," Brady said.

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Agencies
July 13,2020

Jaipur, July 13: Amid a deepening political crisis in Rajasthan where the number 2 leader of the Congress party Sachin Pilot has revolted, over 200 Income Tax (I-T) sleuths raided the residences and properties of two of Chief Minister Ashok Gehlot’s close confidants.

The Income Tax department has carried out searches at over a dozen locations linked to Congress leader Dharamender Rathore as well as jewellery firm owner Rajiv Arora, both of whom are considered close to Gehlot.

Officials said that the raids that are underway in Jaipur, Kota, Delhi, and Mumbai were done after a complaint of tax evasion was made. Under the scanner, they said, are transactions that were made outside the country.

The curious timing of the Income Tax department’s action against Gehlot’s aides has made the Congress accuse the sleuths of acting on the behest of the BJP.

Congress spokesperson Randeep Singh Surjewala tweeted: “After all, BJP's lawyers came on the field. The Income Tax Department started raids in Jaipur. When will ED arrive?”

The Congress is facing a cliffhanger in Rajasthan after the open rebellion by deputy chief minister Sachin Pilot, who on Sunday night claimed that he had the support of 30 MLAs and that Gehlot was leading a minority government in the state.

However, Congress leader Avinash Pande on Monday said 109 MLAs have signed a letter of support to the chief minister, well above the majority mark of 100. The party has issued a whip to all the MLAs, asking them to attend the Congress Legislature Party meeting at 10.30 am. 

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News Network
May 30,2020

Washington, May 30: President Donald Trump said Friday he would strip several of Hong Kong's special privileges with the United States and bar some Chinese students from US universities in anger over Beijing's bid to exert control in the financial hub.

In a day of concerted action, the United States and Britain also raised alarm at the UN Security Council over a controversial new security law for Hong Kong, angering Beijing which said the issue had no place at the world body.

In a White House appearance that Trump had teased for a day, the US president attacked China over its treatment of the former British colony, saying it was "diminishing the city's longstanding and proud status."

"This is a tragedy for the people of Hong Kong, the people of China and indeed the people of the world," Trump said.

Trump also said he was terminating the US relationship with the World Health Organization, which he has accused of pro-China bias in its management of the coronavirus crisis.

But Trump was light on specifics and notably avoided personal criticism of President Xi Jinping, with whom he has boasted of having a friendship even as the two powers feud over a rising range of issues.

"I am directing my administration to begin the process of eliminating policy that gives Hong Kong different and special treatment," Trump said.

"This will affect the full range of agreements, from our extradition treaty to our export controls on dual-use technologies and more, with few exceptions," he said.

Secretary of State Mike Pompeo on Wednesday informed Congress that the Trump administration would no longer consider Hong Kong to be separate under US law, but it was up to Trump to spell out the consequences.

China this week pressed ahead on a law that would ban subversion and other perceived offenses against its rule in Hong Kong, which was rocked by months of massive pro-democracy protests last year.

US restricts students

In one move that could have long-reaching consequences, Trump issued an order to ban graduate students from US universities who are connected to China's military.

"For years, the government of China has conducted elicit espionage to steal our industrial secrets, of which there are many," Trump said.

Hawkish Republicans have been clamoring to kick out Chinese students enrolled in sensitive fields. The FBI in February said it was investigating 1,000 cases of Chinese economic espionage and technological theft.

But any move to deter students is unwelcome for US universities, which rely increasingly on tuition from foreigners and have already been hit hard by the COVID-19 shutdown.

China has been the top source of foreign students to the United States for the past decade with nearly 370,000 Chinese at US universities, although Trump's order will not directly affect undergraduates.

Critics say Trump has been eager to fan outrage about China to deflect attention from his own handling of the coronavirus pandemic that has killed more than 100,000 people in the United States, the highest number of deaths of any country.

Chuck Schumer, the top Democrat in the Senate, called Trump's announcement "just pathetic."

Eliot Engel, a Democrat who heads the House Foreign Affairs Committee, noted that Trump treaded lightly on Hong Kong during last year's protests as he sought a trade deal with Xi.

"Now, the president wants to shift the blame for his failures onto China, so he's doing the right thing for the wrong reason," Engel said.

Trump's order could also trigger retaliation. China in March expelled US journalists after the Trump administration tightened visa rules for staff at Chinese state media.

Clash at UN

The United States and Britain earlier in the day urged China to reconsider the Hong Kong law during talks at the UN Security Council, where China wields a veto -- making any formal session, let alone action against Beijing, impossible.

The Western allies raised Hong Kong in an informal, closed-door videoconference where China cannot block the agenda.

They said China was violating an international commitment as the 1984 handover agreement with Britain, in which Beijing promised to maintain the financial hub's separate system until at least 2047, was registered with the United Nations.

"The United States is resolute, and calls upon all UN members states to join us in demanding that the PRC immediately reverse course and honor its international legal commitments to this institution and to the Hong Kong people," said US Ambassador Kelly Craft, referring to the People's Republic of China.  

China demanded that the United States and Britain "immediately stop interfering in Hong Kong affairs," saying the law did not fall under the Security Council's mandate.

"Any attempt to use Hong Kong to interfere in China's internal matters is doomed to fail," warned a statement from China's UN mission.

"There was no consensus, no formal discussion in the Security Council, and the US and the UK's move came to nothing," it said.

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News Network
June 2,2020

Washington, Jun 2: US President Donald Trump said that peaceful protests following the death of African-American man George Floyd in police custody were derailed by acts of domestic terrorism.

"These are not acts of peaceful protests, these are acts of domestic terror - the destruction of innocent life, and the spilling of innocent blood is an offence to humanity and a crime against God," Trump said during a press briefing on Monday.

Trump also added that the chaos is the work of professional agitators and provocateurs - anarchists and the far-left movement Antifa, among others - and put them on notice, vowing to enforce law and order.

He further said, "Those who threaten innocent life and property will be arrested, detained and prosecuted to the fullest extent of the law. I want the organizers of this terror to be on notice that you will face severe criminal penalties and lengthy sentences in jail. This includes Antifa and others who are leading instigators."

The US president also that he is invoking an 1807 law to mobilize the military around the country to "quickly solve the problem."

"I am also taking swift and decisive action to protect our capital Washington DC. As we speak, I am dispatching thousands and thousands of heavily armed soldier, military personnel and enforcement officers to stop the rioting," Trump said during a press briefing.

"I am mobilizing all available federal resources, civilian and military, to stop the rioting and looting, to end the destruction and arson. And to protect the rights of law-abiding Americans, including your Second Amendment rights," he added.

Trump said mayors and governors must establish an "overwhelming law enforcement presence until the violence has been quelled." If the city or state refuses to take the actions, Trump said he would deploy the US military.

Trump on Monday also said that all Americans are rightly 'sickened by the brutal death' of George Floyd and his administration is fully committed to providing justice to George and his family.

"All Americans were rightly sickened and revolted by the brutal death of George Floyd. My administration is fully committed, the justice will be fully served for George and his family and He will not have died in vain," Trump said.

"My first and highest duty as president is to defend and protect the great country and the American people. I have sworn an oath to uphold the laws of our nation and that is exactly what I will do," he added.

After the media address, Trump made a surprise visit to the damaged St Johns church near White House, walking through park violently cleared of protesters. He walked to the church across the street from the White House after tear gas was fired at protesters in the area.

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