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 India's exemption has expired, but India has not withdrawn its export subsidies, USTR alleged.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.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
June 17,2020

Beijing, Jun 17: Beijing's airports cancelled more than 1,200 flights and schools in the Chinese capital were closed again on Wednesday as authorities rushed to contain a new coronavirus outbreak linked to a wholesale food market.

The city reported 31 new cases on Wednesday while officials urged residents not to leave Beijing, with fears growing about a second wave of infections in China, which had largely brought its outbreak under control.

Tens of thousands of people linked to the new Beijing virus cluster -- believed to have started in the sprawling Xinfadi wholesale food market -- are being tested, with almost 30 residential compounds in the city now under lockdown.

At least 1,255 scheduled flights were cancelled Wednesday morning, state-run People's Daily reported, nearly 70 percent of all trips to and from Beijing's main airports.

The outbreak had already forced authorities to announce a travel ban for residents of "medium- or high-risk" areas of the city, while requiring other residents to take nucleic acid tests in order to leave Beijing.

Meanwhile, several provinces were quarantining travellers from Beijing, where all schools -- which had mostly reopened -- have been ordered to close again and return to online classes.

"The epidemic situation in the capital is extremely severe," Beijing city spokesman Xu Hejian warned Tuesday.

Mass testing under way

Officials have closed 11 markets and disinfected thousands of food and beverage businesses in Beijing after the outbreak was detected.

The city has now reported 137 infections over the last six days, with six new asymptomatic cases and three suspected cases on Wednesday, according to the municipal health commission.

An additional two domestic cases, one in neighbouring Hebei province and another in Zhejiang, were reported by national authorities on Wednesday, while there were 11 imported cases.

Authorities have so far banned group sports, ordered people to wear masks in crowded enclosed spaces, and suspended inter-provincial group tours in response to the outbreak.

Officials said that since May 30, more than 200,000 people had visited Xinfadi market, which supplies more than 70 percent of Beijing's fruit and vegetables.

More than 8,000 workers there were tested and quarantined.

Until the new outbreak, most of China's recent cases were nationals returning from abroad as COVID-19 spread globally, and the government had all but declared victory against the disease.

China's Center for Disease Control and Prevention said Monday that the virus type found in the Beijing outbreak was a "major epidemic strain" in Europe.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
January 17,2020

New Delhi, Jan 17: A Delhi court Friday issued fresh death warrants for February 1, 6 am against the four convicts in the Nirbhaya gang rape and murder case.

Additional Sessions Judge Satish Kumar Arora was hearing a plea by one of the four death row convicts in the case, Mukesh Kumar Singh, seeking postponement of the date of his execution scheduled for January 22.

Earlier in the day, the Tihar jail authorities sought issuance of fresh death warrants against the four convicts.

Public Prosecutor Irfan Ahmed told the court that Mukesh's mercy plea was rejected by President Ram Nath Kovind on Friday.

The 23-year-old paramedic student, referred to as Nirbhaya, was gang-raped and brutally assaulted on the intervening night of December 16-17, 2012 inside a moving bus in south Delhi by six persons before being thrown out on the road.

She died on December 29, 2012, at Mount Elizabeth Hospital in Singapore.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
Agencies
March 14,2020

Nairobi, Mar 14: Kenya and Ethiopia on Friday announced their first confirmed cases of coronavirus, as East Africa, which has so far been unscathed by the global pandemic, scaled up emergency measures to contain its spread.

In Kenya, a 27-year-old Kenyan woman tested positive for the virus on Thursday in Nairobi, a week after returning from the United States via London.

She was in a stable condition and recovering, Health Minister Mutahi Kagwe told reporters.

"We wish to assure all Kenyans that the government will use all the resources available to fight coronavirus," he said, as the government rolled out a raft of new containment measures.

The government had traced all the contacts of the patient since she arrived back in Kenya on March 5, he said.

"At the moment, there is absolutely no need for panic and worry," he said.

Kenya, with a population of 50 million people, saw a spree of panic buying among the middle-class in Nairobi supermarkets, in the wake of the announcement.

Meanwhile Ethiopia, Africa's second most populous nation with over 100 million people, said a 48-year-old Japanese man who had arrived in the country on March 4 from Burkina Faso was confirmed to have contracted the virus.

"He is undergoing medical follow-up and is in a stable condition. Those who have been in contact with this person are being traced and quarantined," the health ministry said in a statement.

Burkina Faso only confirmed its first case on Tuesday -- a couple returning from France -- and the Japanese patient had been in that country since February 24.

Ethiopian Health Minister Lia Tadesse said three other patients were in isolation.

Ethiopia becomes the 15 country in Africa with a confirmed case of the virus that has swept the globe, infecting more than 130,000 people and killing nearly 5,000 since it first emerged in China.

But to date the continent has been spared the worst of the pandemic.

Only five people have succumbed to coronavirus so far -- all in north Africa -- with the sub-Saharan region recording no deaths and very low numbers of confirmed cases.

But countries in East Africa -- which until the positive case in Kenya, had only recorded negative test results -- have been taking precautions.

Some flights have been restricted, with Kenya Airways suspending its route to Rome, and charter flights from Italy to the Kenyan coast on hold.

It has also suspended international conferences, a top earner in Nairobi, a hub for such events in the region, and non-essential travel abroad for politicians.

The government announced more expansive restrictions on Friday, including a temporary ban on major public gatherings, prison visits and activities between schools.

Other countries in the region have been rolling out their own measures.

In Rwanda, which shares a border with the Democratic Republic of Congo, which has confirmed cases, washing basins with soap and sanitiser have been placed on streets for commuters to use before boarding buses.

Authorities in Kigali, the capital, have also banned concerts, rallies and trade fairs -- although like in Kenya and Uganda, church services have been proceeding and bars, restaurants and entertainment precincts remain open.

Neighbouring Burundi, meanwhile, has quarantined 34 people in a hotel in Bujumbura as a precaution.

Uganda has ordered that visitors from a number of affected countries self quarantine for 14 days, or consider simply not visiting at all.

South Sudan's health ministry said meanwhile that it was "temporarily suspending direct flights between South Sudan and all affected countries".

Kagwe, the Kenyan health minister, also addressed a rumour circulating on social media that people with black skin cannot contract the virus.

"I would like to disabuse that notion. The lady (confirmed with coronavirus in Kenya) is an African, like you and I," he said.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.