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ARTICLE · 15 NOVEMBER 2019

WTO Panel Decides Against India On Export Promotion Schemes

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Article 3.1(a) read with Article 3.2 of the SCM prohibits member countries from granting or maintaining a subsidy which was contingent (whether in law or fact) on export performance.

IndiaInternational Law
Rashmi Deshpande
Rashmi Deshpande
Anjali Krishnan
Anjali Krishnan
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On 31 October 2019, a specialised panel constituted by the World Trade Organisation (WTO) released a report recommending the withdrawal of several export promotion schemes which are integral to India's foreign trade policy.

Background

The panel was constituted on 28 May 2018 by the Dispute Settlement Body (DSB) in response to a reference made by the United States (US) to the WTO. The reference was made to examine whether certain identified export promotion schemes by India were violative of the Agreement on Subsidies and Countervailing Measures (SCM).

Article 3.1(a) read with Article 3.2 of the SCM prohibits member countries from granting or maintaining a subsidy which was contingent (whether in law or fact) on export performance.

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