Indian export subsidy hurting American firms: US complains at WTO

Agencies
March 15, 2018

Washington, Mar 15: The US on Wednesday challenged Indian export subsidy schemes at the World Trade Organisation, saying these programmes harm American workers by creating an "uneven" playing field, officials said.

The US Trade Representative (USTR) argued that at least half a dozen Indian programmes provide financial benefits to Indian exporters, which allow them to sell their goods more cheaply to the detriment of American workers and manufacturers.

These programs are: the Merchandise Exports from India Scheme; Export Oriented Units Scheme and sector specific schemes, including Electronics Hardware Technology Parks Scheme, Special Economic Zones, Export Promotion Capital Goods Scheme and Duty Free Imports for Exporters Programme.

"These export subsidy programmes harm American workers by creating an uneven playing field on which they must compete," said Lighthizer.

"USTR will continue to hold our trading partners accountable by vigorously enforcing US rights under our trade agreements and by promoting fair and reciprocal trade through all available tools, including the WTO," Lighthizer said.

The announcement from Lighthizer came while Indian Foreign Secretary Vijay Gokhale was on his maiden visit to the US. He was scheduled to hold meetings with the USTR.

In a statement, the USTR alleged that through these programmes, India is given exemption from certain duties, taxes, and fees which benefits numerous Indian exporters, including producers of steel products, pharmaceuticals, chemicals, information technology products, textiles, and apparel.

According to the Indian government documents, thousands of Indian companies are receiving benefits totaling to over $7 billion annually from these programs.

The USTR said export subsidies provide an unfair competitive advantage to recipients.

A limited exception to this rule is for specified developing countries that may continue to provide export subsidies temporarily until they reach a defined economic benchmark.

India was initially within this group, but it surpassed the benchmark in 2015. India's exemption has expired, but India has not withdrawn its export subsidies, USTR alleged.

"In fact, India has increased the size and scope of these programs," USTR charged.

For example, India introduced the Merchandise Exports from India Scheme in 2015, which has rapidly expanded to include more than 8,000 eligible products, nearly double the number of products covered at its inception, it alleged.

Exports from Special Economic Zones increased over 6,000 per cent from 2000 to 2017, and in 2016, exports from Special Economic Zones accounted for over $82 billion in exports, or 30 per cent of India's export volume.

Exports from the Export Oriented Units Scheme and sector specific schemes, including Electronics Hardware Technology Parks Scheme, increased by over 160 per cent from 2000 to 2016, it asserted.

Noting that consultations are the first step in the WTO dispute settlement process, The USTR said if the US and India are not able to reach a mutually agreed solution through consultations, it may request the establishment of a WTO dispute settlement panel to review the matter.

The House Ways and Means Committee Chairman Kevin Brady applauded the USTR's decision to challenge through the WTO.

"The Administration's decision to challenge India's USD7 billion worth of prohibited subsidies is a plain and unmistakable signal that we will not tolerate any failure by our trading partners to live up to their commitments at the expense of US manufacturers, service providers, farmers, and ranchers," Brady said.

"Today's action highlights the value of ensuring that our trade agreements are fully enforceable through binding dispute settlement. We must continue to hold our trading partners accountable and ensure a level playing field for American workers and businesses," he said.

"In responding to India's prohibited subsidisation of its steel industry in this manner, we prove the significance of the WTO dispute settlement process as a powerful, valuable, and appropriate tool in the administration's toolbox to address unfair practices that hurt our steel workers and companies. I join the Administration in calling on India to end its unfair trading immediately," Brady said.

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News Network
May 3,2024

Bengaluru: In a fresh development in the alleged Hassan sex abuse case, JD(S) MLA H D Revanna, who was accused of sexually harassing his house help, has been booked for kidnapping a victim allegedly sexually assaulted by his son, Hassan MP Prajwal Revanna. The case was filed late Thursday evening at the KR Nagar police station in Mysuru.

The 20-year-old complainant from KR Nagara accused one Sathish Babanna of taking his mother away forcibly and keeping her in an unknown location at the behest of Revanna.

As per the FIR, Revanna has been named as accused 1 while Babanna was accused 2. The duo were booked under IPC Sections 364A (kidnapping for ransom), 365 (kidnapping or abducting with intent secretly and wrongfully to confine a person) and 34 (acts done by several persons in furtherance of common intention).

The complainant claimed that his mother, whose name and age were not revealed, had worked as a help in Revanna’s house and farm in Holenarasipura for six years, quit the job three years ago and returned to KR Nagara. She then worked for daily wages.

“Nearly three to four days before the Lok Sabha election, Sathish Babanna, who is known to us and hailed from our native place, took my mother to Holenarasipura after saying that Bhavani Revanna, the wife of MLA Revanna, had asked for her,” the complainant alleged, adding that Babanna dropped her back on the day of the polls.

Babanna allegedly told the victim’s mother and father to remain silent and evade the police if they came looking for them and to inform him of the developments.

On April 29, at around 9 pm, when the complainant was home, the suspect Babanna arrived, told the complainant’s mother that Revanna had asked for her and took her away on his motorcycle. The complainant claimed that he wasn’t aware of where Babanna took his mother and he had told him that if the police found her, a case would be registered and they would all go to jail.

On May 1, two of the complainant’s relatives called him on the phone and told him that there was a video of his mother being sexually assaulted by Prajwal and that it was a huge case, the FIR noted. He was also informed by his two friends of his "mother's videos being circulated".

When he asked Babanna later that night, he was allegedly told that there was a photo of his mother standing with a stick when Prajwal had quarrelled with someone earlier and an FIR had been registered. Babanna told the complainant that his mother would have to be released on bail, the FIR noted.

“Babanna told me not to speak on the matter on my phone and asked me to talk from a different phone,” he said, seeking action from the police.

The case has been transferred to the Special Investigation Team (SIT) set up to probe the Hassan sex scandal as per the government order.

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News Network
May 3,2024

UScampusprotst.jpg

US riot police have dismantled an anti-war and pro-Palestinian protest camp at the University of California at Los Angeles, a day after it was attacked by pro-Israel supporters.

At least 200 pro-Palestine protesters were arrested during the pre-dawn raid, led by a phalanx of California Highway Patrol officers carrying shields and batons, early on Thursday.

The protesters tried to block the officers' advance by their sheer numbers, shouting "push them back", while hundreds of pro-Palestinian activists who assembled outside the tent city were heard chanting "Shame on you" at the police.

According to estimates of local television station KABC-TV, 300 to 500 protesters were hunkered down inside the camp, while about 2,000 more had gathered outside the barricades in support.

The raid took place about a day after police watched on as pro-Israel groups violently attacked the encampment. Late Tuesday night, masked counter-demonstrators mounted a surprise assault on the camp, using sticks to beat the peaceful activists.

The assault went on for three hours into early Wednesday morning until police intervened and restored order.

The authorities’ slow response drew wide criticism from political leaders, including a spokesperson for California Governor Gavin Newsom who said "limited and delayed campus law enforcement response" to the unrest is "unacceptable."

The Pro-Palestine demonstrations began at Columbia University in New York City on April 17, and have spread across other campuses in the US in a student movement unlike any other this century.

US police arrested about 2,200 people during pro-Palestinian protests at college campuses across the country in recent weeks, the Associated Press reported.

A tally by the news agency recorded at least 56 incidents of arrests at 43 different US colleges or universities since April 18.

The students are calling for an end to Israel’s genocidal war on Gaza and demanding schools divest from companies that support the Israeli regime.

Israel launched the war on Gaza on October 7 after the Palestinian resistance movement Hamas waged the surprise Operation Al-Aqsa Storm against the occupying entity in response to the Israeli regime's decades-long campaign of bloodletting and devastation against Palestinians.

Tel Aviv has also blocked water, food, and electricity to Gaza, plunging the coastal strip into a humanitarian crisis.

Since the start of the offensive, the Israeli regime has killed at least 34,596 Palestinians and injured 77,816 others.

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News Network
May 4,2024

Mangaluru, May 4: The Mangaluru International Airport was besieged with a harrowing message of terror recently, when an email, purportedly from malevolent elements, menacingly declared the planting of bombs within the airport premises. 

Addressed to the office of the airport authority, the missive, steeped in ominous overtones, bore the ominous signature of a terrorist faction, ominously named 'Terrorizers 111'.

The communication, disseminated in English, ominously detailed the clandestine emplacement of explosives in areas eluding facile detection, accompanied by a chilling warning of their imminent detonation. The threat, ominously looming over not only the infrastructure but also the airborne vessels, portended a catastrophic deluge of bloodshed and loss.

In response to this dire communiqué, airport authorities swiftly engaged the apparatus of law enforcement, dispatching urgent alerts to the vigilant guardians of public safety. Acting upon the dictates of higher echelons, a formal dossier of this menacing correspondence was meticulously compiled, cloaked in the veil of confidentiality to thwart any premature dissemination.

Mangaluru International Airport found itself in grim camaraderie with more than 30 counterparts under the aegis of the Airport Authority of India (AAI) and private domains, all recipients of this chilling electronic diatribe. A comprehensive net of precautionary measures was swiftly cast, fortifying the bastions of security in anticipation of any nefarious designs lurking within the shadows.

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