GENEVA — The U.S. has asked the World Trade Organization to evaluate whether India is still entitled to provide export subsidies to its textiles and apparel sector that are normally prohibited under global rules.
Under WTO subsidy rules, countries designated as least developed nations, and also some developing nations, including India, are allowed to use such subsidies providing they meet certain conditions. However, the conditions also stipulate that developing nations such as India can no longer benefit from the exemption from the subsidy prohibition if it has reached export competitiveness in a product. This would occur if exports of the product have reached 3.25 percent share of world trade of that product for two consecutive years.
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