By  on April 28, 2010

GENEVA — The U.S. called on India Tuesday to list which export subsidies it would scrap on a range of textiles and apparel products found by the World Trade Organization to be ineligible because they have reached a “competitive” level of world market share.

During a session of the WTO’s committee on subsidies, the U.S. asked India to identify the subsidy programs that would be phased out over eight years, trade officials said. The U.S. also expressed concerns about recent reports of new subsidy programs the Indian government is providing to its exporters in the sector.

The WTO evaluation in March, made after a request by the U.S., determined that some Indian textile and apparel products should no longer qualify for export subsidies as they had reached the level of “export competitiveness.” Under WTO rules, this occurs if exports of a product from developing nations, such as India, have achieved a 3.25 percent share of world trade for two consecutive years.

The WTO calculation found that India had reached this status in categories including woven cotton fabrics, women’s and girls’ blouses, shirts, T-shirts, vests, suits, blazers, dresses and skirts.

The U.S. said it had made its own calculations before making its WTO request and that the results generally concurred. India countered that it was carefully studying the WTO report and calculations, and would come back with a response, trade officials said.

Indian officials also said they understood the phaseout period would start from the date the WTO gives its final determination of the calculations. But the U.S. said its interpretation was that the phaseout period would begin retroactively when India’s exports in these categories became export competitive.

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