A WTO Panel has issued its report in the dispute India – Export Related Measures (DS 541) on 31 October 2019. The dispute was initiated by the United States in March 2018 challenging several of India's export promotion schemes as violative of Article 3 of the Agreement on Subsidies and Countervailing Measures (SCM Agreement). The Panel has found that India acted inconsistently with its obligations under the SCM Agreement with respect to all the challenged export promotion schemes. While the current impasse surrounding the functioning of the Appellate Body makes it unclear as to when and how this report will be adopted, the findings of the Panel are important given India is already in the process of rejigging its export promotion programs. Further, the findings may have implications on the WTO-consistency of several export processing zones maintained by a number of Member Countries of the WTO.
In this alert, we summarise the key findings of the Panel and implications of the same. Should you have any questions, please feel free to write to us.
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