Keen on honouring its World Trade Organisation (WTO) commitments on subsidies, the Government of India may shift its focus from incentivising textile and garment exports to incentivising their production in the upcoming Foreign Trade Policy. Article 27.6 of WTO's 'Agreement On Subsidies And Countervailing Measures' states, "Export competitiveness in a product exists if a developing country Member's exports of that product have reached a share of at least 3.25 percent in world trade of that product for two consecutive calendar years." According to WTO International Trade Statistics, India's share in global textile and clothing trade has remained above 3.25 per cent since 2005. By this count, India should end its export subsidies for textiles and apparel by 2015. But, the WTO asked India to consider phasing out subsidies for textiles and garments only in 2010. This gives a few years' grace period for India, as the WTO's Article 27.6 adds, "Export competitiveness shall exist either (a) on the basis of notification by the developing country member having reached export competitiveness, or (b) on the basis of a computation undertaken by the (WTO) Secretariat at the request of any member."
展开▼
