Résumé
The European Community represents one of the primary destinations for Indian goods, accounting for one fifth of Indian exports. Indian goods have been at the receiving end of a significant majority of anti subsidy investigations initiated by the European Commission. Such goods have been alleged to be benefiting from subsidies inconsistent with Council Regulation 2026/97 which forms the legal basis for anti subsidy investigations initiated by the Commission. The paper puts forth an analysis of India's export incentive schemes including old schemes already subjected to challenge as well as new schemes vulnerable to challenge in future investigations with regard to the Council Regulation 2026/97 and the WTO Agreement on Subsidies and Countervailing Measures.
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Extrait
Indian Exports at Crossroads: Why the European Community Is Subjecting Indian Goods to Countervailing Duties
1 Introduction
Exports represent a key vehicle of development for a nation, being as it is one of the principal modes of foreign exchange income. It is therefore not surprising that the state as institutions, in particular the ones in a comparatively infant stage of development, would invariably seek to lend a helping hand to manufacturers and traders - exporters who seek to export their goods or services. Such supports often are by way of grant of subsidies contingent on export performance or export subsidies.India is exempted from the general prohibition of grant of export subsidies as defined in the World Trade Organization (WTO) Agreement on Subsidies and Countervailing Measures1 (SCM) by virtue of being an Annex VII Member of the agreement, which exempts from the prohibition such nations which have a net per capita income of less than $1000 provided they have not reached more than 3.25% world market share in the product in question2. However, they remain subject to countervailing duties in the event they cause material injury to the domestic industry of importing states. The European Communities (EC) a primary destination for Indian products, accounting for one fifth of Indian exports3 have, repeatedly subjected Indian goods to countervailing duties on the ground that they receive export subsidies which are in violation of the Council Regulation (EC) NO 2026/97 of 6 October 1997 on protection against subsidised imports from countries not members of the European Community4 which governs EC law on import of subsidised goods, with Indian companies involved in a significant majority of anti subsidy investigations initiated by the Community.India's controversial schemes like the Duty Entitlement Pass Book scheme (DEPB) a scheme repeatedly deemed actionable by the European Communities, to the relatively new schemes like the Special Economic Zones (SEZ) and the Focus Product and Market scheme (FPS/FMS) represent subsidies vulnerable to challenge and hence countervailing duties. The fundamental focal point, however, remains the Agreement on Subsidies and Countervailing Measures, the WTO regime's agreement regulating the use of subsidies by its member states, from which the European Communities as also India borrow heavily in respect of their domestic regulation on subsidies and remain accountable to in respect of their WTO obligations. The arti...Voir le contenu complet de ce document
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