India under No Obligation to Implement WTO's Dispute Panel Recommendations on Export Schemes: Goyal

A dispute settlement panel of World Trade Organization (WTO) in its report issued to members on 31 October 2019 has ruled that India's export-related schemes (including SEZ scheme) are in the nature of prohibited subsidies under the Agreement on Subsidies and Countervailing Measures and are inconsistent with WTO norms.

India is under no obligation to implement the recommendations of the WTO's dispute panel on its export promotion schemes, which was challenged by the US, as New Delhi has appealed against that order at the higher level, Parliament was informed on Wednesday.

A dispute settlement panel of World Trade Organization (WTO) in its report issued to members on 31 October 2019 has ruled that India's export-related schemes (including SEZ scheme) are in the nature of prohibited subsidies under the Agreement on Subsidies and Countervailing Measures and are inconsistent with WTO norms.

The panel has given a time-frame of 180 days for withdrawal of Special Economic Zone (SEZ) scheme

India has appealed at the WTO's appellate body against this ruling.

"Due to non-functioning of appellate body (of the WTO's dispute settle mechanism), the appeal has been kept in suspension. Till the appeal is disposed of, India is under no obligation to implement the recommendations of panel," Commerce and Industry Minister Piyush Goyal said in a written reply to the Lok Sabha.

In a separate reply, the minister informed Parliament that India is involved in 15 trade disputes, mostly against the US, at the WTO at present.

[Source: ET)