Abstract
India has a large positive trade balance in apparels and is ranked among the top 10 apparel exporting countries. However, of late, the export growth has stagnated and the USA has taken India to the World Trade Organization’s (WTO) Dispute Settlement Body over export-linked subsidies given to select sectors including apparel. According to USA, the subsidies given by India are prohibited under the WTO’s Agreement on Subsidies and Countervailing Measures. While the Dispute Settlement panel will come up with a decision soon, this paper examines the concerns raised by the USA, the development thereafter and its likely impact on India’s apparel exports. The paper makes policy recommendations on how to design WTO “smart” subsidies, which will not only be difficult to countervail but can also help improve the competitiveness, efficiency and productivity of the apparel sector.
Recommended Citation
Mukherjee,, Arpita; Parashar Sarma, Angana; and Sinha, Soham
(2019)
"Export-Linked Subsidies in Apparels: India, USA and the WTO,"
Indian Journal of International Economic Law: Vol. 11, Article 4.
Available at:
https://repository.nls.ac.in/ijiel/vol11/iss1/4