US has filed a trade dispute in WTO and many other countries including EU , Japan etc have joined as third parties.
The issue is with regard to export incentive schemes such as EOU/EHTP, advance authorisation, EPCG etc. The reason being India has crossed the eligibility to avail the exemptions/ subsidy.
In these circumstances, the fate/ continuation of these incentives is uncertain.
As far as EPCG, AA is concerned, the time duration is short when compared to EOU which has a validity of 5 years and to be renewed.
How is the EOU scheme poised?
Regards
S.Ramaswamy
US Challenges India's Export Incentives at WTO; EU, Japan Join as Third Parties. Future of Schemes Uncertain. A trade dispute has been initiated by the US against India at the WTO, with several countries, including the EU and Japan, joining as third parties. The dispute concerns India's export incentive schemes like EOU/EHTP, advance authorization, and EPCG, as India has surpassed eligibility criteria for these subsidies. The continuation of these incentives is uncertain, with the EOU scheme having a longer validity compared to others. The government is expected to represent India at the WTO. There is skepticism about India's chances of retaining these incentives, and there is a question of whether promissory estoppel might apply. (AI Summary)
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