EOU/EHTP - US -India Trade Dispute at WTO

[Nash Industries I Pvt Ltd]

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

[DR.MARIAPPAN GOVINDARAJAN]

Yes, there is uncertain. The Government is to represent before the WTO in this regard.

[Nash Industries I Pvt Ltd]

Thank you sir.

As per the Commerce Secretary (in Kolkatta) as well as Export Promotion Councils, MAIT etc, the chances of India is remote as the threshold is crossed much earlier.

Whether Promissory estoppel will come into play?

Regards,

S.Ramaswamy

AI Summary

Export subsidy compliance challenged in multilateral trade dispute, threatening India's export incentive schemes and renewal mechanisms.
A multilateral trade dispute alleges India's export incentive schemes-EOU/EHTP, advance authorisation, EPCG and related licence mechanisms-exceed permissible subsidy or exemption thresholds, placing the continuity of those incentives in doubt; the Government is to respond and uncertainty is acute for renewable five year EOU arrangements, with questions raised about the potential role of promissory estoppel in protecting beneficiary reliance.