Indian Export Subsidies Ruled Illegal at WTO

A variety of export subsidies, which allowed certain industries to avoid paying sales taxes, customs duties, or reduce income tax liability have been ruled illegal by a World Trade Organization panel. The ruling was released Oct. 31. India, unless it appeals the ruling, has 90, 120 or 180 days to stop the programs at issue.

The U.S. had first brought the complaint in March 2018. U.S. Trade Representative Robert Lighthizer said the export subsidies covered $7 billion in exports, including steel, pharmaceuticals, chemicals, information technology products, textile and apparel. He called it "a resounding victory." The Commerce Ministry of India has not publicly reacted to the panel ruling yet. India had argued it could skirt rules on export subsidies because of its developing country status, but the WTO said it has graduated from that exemption.