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 India's exemption has expired, but India has not withdrawn its export subsidies, USTR alleged.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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News Network
May 12,2020

London, May 12: British Prime Minister Boris Johnson has warned that a mass vaccine for the novel coronavirus may be over a year away and, in the worst-case scenario, may in fact never be found.

In his foreword to the government’s new 50-page guidance on a step by step easing of the lockdown measures in place to control the spread of the deadly virus, the UK prime minister lays out plans for businesses to gradually start reopening with “COVID-19 Secure” measures of social distancing and for the public to use “good solid British common sense” as the economy is unlocked.

“A mass vaccine or treatment may be more than a year away,” said Johnson, highlighting the work being done in the UK by scientists at Oxford University and Imperial College London towards this mission.

“Indeed, in a worst-case scenario, we may never find a vaccine. So our plan must countenance a situation where we are in this, together, for the long haul, even while doing all we can to avoid that outcome,” he said.

Admitting that a vaccine or drug-based treatment is the only “feasible long-term solution”, he said the UK has accelerated this with “promising” vaccine development programmes and a collaboration between Oxford University and pharma major AstraZeneca was a vital step that could help rapidly advance the manufacture of a Covid-19 vaccine when it is ready.

As part of global efforts, he flagged the GBP 388 million in aid funding for research into vaccines, tests and treatment, including GBP 250m to the Coalition for Epidemic Preparedness Innovations.

“But while we hope for a breakthrough, hope is not a plan,” he said, as he unveiled his plan for starting to lift lockdown restrictions from this week in phases.

Following a televised address to the nation on Sunday night and a statement in Parliament on Monday, the guidance comes into effect in public life across England from Wednesday when people will be allowed one-to-one contact with people other than those they live with, as long as they remain outside and two metres apart.

They are allowed to play sport with a friend or family member from outside their household or socialise with them in the open air for the first time in more than six weeks since the lockdown was imposed.

People are still advised to work from home where possible but start heading into work where necessary, in sectors such as construction and manufacturing, keeping the social distancing norms in place.

Under the step by step plan, by the start of next month non-essential shops will also reopen, with some hairdressers, pubs and cinemas to follow from July. However, as part of a Covid-19 Alert System, if infection rates are seen to be rising again, restrictions would be tightened “possibly at short notice”.

Fines for breaching the new rules will also be increased to GBP 100 and will double for each repeat offence, up to a maximum of GBP 3,200.

Johnson said: "I must ask the country to be patient with a continued disruption to our normal way of life, but to be relentless in pursuing our mission to build the systems we need. The worst possible outcome would be a return to the virus being out of control – with the cost to human life, and – through the inevitable re-imposition of severe restrictions – the cost to the economy. We must stay alert, control the virus, and in doing so, save lives.

“Then, as vaccines and treatment become available, we will move to another new phase, where we will learn to live with Covid-19 for the longer term without it dominating our lives.”

The devolved administrations of Scotland and Wales are putting their own measures in place and keeping the “stay at home” message in place, rather than switch to the new “stay alert” message.

The UK government’s latest messaging has come under attack from the Opposition and other sections of society over a feared lack of clarity for the general public.

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Agencies
May 4,2020

Washington, May 4: Anxious for an economic recovery, President Donald Trump fielded Americans' questions about decisions by some states to allow nonessential businesses to reopen while other states are on virtual lockdown due to the coronavirus.

After more than a month of being cooped up at the White House, Trump returned from a weekend at the Camp David presidential retreat in Maryland and participated in a “virtual” town hall, hosted Sunday night by Fox News Channel, from inside the Lincoln Memorial.

He pushed for an economic reopening, one his advisers believe will be essential for his reelection chances this November.

“We have to get it back open safely but as quickly as possible," Trump said.

The president acknowledged fear on both sides of the issue, some Americans worried about getting sick while others are concerned about losing jobs.

Though the administration's handling of the pandemic, particularly its ability to conduct widespread testing, has come under fierce scrutiny, the president defended the response and said the nation was ready to begin reopening.

“I'll tell you one thing. We did the right thing and I really believe we saved a million and a half lives,” the president said.

But he also broke with the assessment of his senior adviser and son-in-law, Jared Kushner, saying it was “too soon to say" if the federal government was overseeing a “success story."

Trump's impatience also flashed. While noting that states would go at their own pace in returning to normal, with ones harder hit by the coronavirus going slower, he said that “some states frankly I think aren't going fast enough" and singled out Virginia, which has a Democratic governor and legislature.

And he urged the nation's schools and universities to return to classes this fall.

But many public health experts believe that cannot be done safely until a vaccine is developed.

Trump declared Sunday that he believed one could be available by year's end although his own pandemic task force has predicated it could be another 18 months.

Federal guidelines that encouraged people to stay at home and practice social distancing expired late last week.

Debate continued over moves by governors to start reopening state economies that tanked after shopping malls, salons and other nonessential businesses were ordered closed in attempt to slow a virus that has killed more than 66,000 Americans, according to a tally of reported deaths by Johns Hopkins University.

The U.S. economy has suffered, shrinking at a 4.8 per cent annual rate from January through March, the government estimated last week. It was the sharpest quarterly drop since the 2008 financial crisis.

Roughly 30.3 million people have filed for unemployment aid in the six weeks since the outbreak forced employers to shut down and slash their workforces. It was the worst string of layoffs on record.

Larry Kudlow, Trump's top economic adviser, on Sunday predicted a “spectacular 2021” — with “the right set of policies” — on top of a rebound from July through December of this year.

He said on CNN's "State of the Union" that the administration would "pause” to review the effectiveness of trillions in economic relief spending before making any decision on whether additional aid is needed.

House Speaker Nancy Pelosi, D-Calif., said Thursday that state and local governments are seeking up to USD 1 trillion for coronavirus costs, The Senate planned to reopen Monday, despite the Washington area's continued status as a virus hot spot and with the region still under stay-at-home orders.

The House remains shuttered. The pandemic is forcing big changes at the tradition-bound Supreme Court: The justices will hear arguments, beginning Monday, by telephone for the first time since Alexander Graham Bell patented his invention in 1876.

Congressional Republicans are resisting calls by Democrats for emergency spending for states and local governments whose revenue streams all but dried up in recent weeks.

The GOP is counting on the country's reopening and the rebound promised by Trump as their best hope to forestall another big round of virus aid.

The leaders of California and Michigan are among governors under public pressure over lockdowns still in effect while states such as Florida, Georgia and Ohio are reopening.

Michigan Governor Gretchen Whitmer, a Democrat, said Sunday that the armed protesters who demonstrated inside her state's Capitol “depicted some of the worst racism” and “awful parts” of US history by showing up with Confederate flags, nooses and swastikas.

Trump had tweeted “LIBERATE” and named Michigan and other states in mid-April. In a new tweet Friday, he urged Whitmer to “make a deal” with the protesters. “These are very good people, but they are angry.

They want their lives back again, safely!” Trump said.

Despite the opposition of Michigan's Republican-controlled Legislature, Whitmer has extended a state of emergency declaration and directed most businesses statewide to remain closed.

Some people participating in other public protests across the US have not kept their distance from one another and have rallied without masks, not heeding public health recommendations.

Deborah Birx, coordinator of the White House coronavirus task force, called that behavior “devastatingly worrisome.”

She said people will feel guilty for the rest of their lives if they end up infected and unwittingly spread the virus to vulnerable family members.

“We need to protect each other at the same time we're voice our discontent,” she told CNN's “State of the Union.”

An overwhelming majority of Americans support stay-at-home orders and other efforts to slow the virus' spread, according to a recent survey from The Associated Press-NORC Center for Public Affairs Research.

Asked about states that are reopening before they meet benchmarks laid out in federal guidelines she helped write, Birx said the guidelines “are a pretty firm policy of what we think is important from a public health standpoint.”

She added that she and others have made it clear that people must continue practising social distancing, “scrupulous” hand washing and other measures to protect themselves and others.

Fox News Channel said it asked viewers to submit questions about reopening the country on the network's Twitter, Facebook and Instagram accounts for a chance to appear on the rare broadcast from the Lincoln Memorial. Trump spoke from the memorial's steps last July Fourth.

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Agencies
July 24,2020

Chengdu, Jul 24: China on Friday asked the US to close down its Consulate in Chengdu in retaliation to Washington's decision to shut the Chinese Consulate in Houston.

A statement by the Chinese Foreign Ministry said China has informed the US Embassy of its decision to withdraw its consent for the establishment and operation of the US Consulate General in Chengdu.

This was in response to "unilateral" decision by the US to shut the Houston Consulate. China's decision is legitimate and necessary response to the unreasonable actions of the US, it said.

The US on Wednesday ordered the closure of the Chinese consulate in Houston, a move it said was aimed "to protect American intellectual property and private information."

Reacting strongly to the US move, Chinese Foreign Ministry spokesman Wang Wenbin termed it as an "unprecedented escalation and warned retaliatory measures.

China on Thursday said that "malicious slander" is behind an order by the US government to close its consulate in Houston, Texas, and maintained that its officials have never operated outside ordinary diplomatic norms.

Wang said the order to close the consulate violates international law and basic norms governing international relations, and seriously undermines China-US relations.

This is breaking down the bridge of friendship between the Chinese and American people, Wang said.

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