No Export Subsidies for Indian Cotton

The Ministry of Commerce and Industry of India has clarified that the country is not using export subsidies for cotton.

Since India did not have export subsidies from 1986 to 1988 – the base period per the Uruguay Round Agreement on Agriculture (AOA) – India is not entitled to export subsidies. However, subsidies to reduce the cost of marketing, transportation costs, handling and processing costs are permitted without circumventing the export subsidy reduction commitments.

Advertisement

Developed nations have agreed to eliminate export subsidies based on the Nairobi Ministerial Decision on Cotton and Export Competition, which was adopted on December 19, 2015. This agreement will enable developing countries to eliminate export subsidies by January 1 of 2017.

The Government of India states that the Nairobi Decision on elimination of cotton export subsidies will be good for Indian cotton exports, as it will provide a leveling platform since India is not entitled to the export subsidy provision. The country has pushed for the adaptation of the Nairobi decision, which will prevent dumping of subsidized cotton in India.

 

Top Articles
Cotton Companion: Adjusting to New EPA Adjustments

0