US demands WTO action on China, India notification failures on subsidies

Category: WTO Sub-category: International Sanctions
Document type: news

18-Oct-2011 | 18:10 IST | Edited by: Abhishek Sikdar

The United States has sent an intimation to the World Trade Organisation (WTO) to obtain detailed information on various 200 and 50 subsidy programs in China and India respectively.

Under WTO rules every member has to provide prompt provision of detailed information on subsidy programs to WTO. China since joining WTO in December 2001 has given only one subsidy notification in 2005 and also incomplete in the period 2001-2004. Since then China has undertaken various subsidy programs including green technology and domestic technological renovation.

Previously in 2011, India submitted its first notification in 10 years which covered only 3 subsidy programs. India has not given any notice on subsidy programs on shipbuilding, steel development and software inter alia.

US Trade Representative Ron Kirk said that US has gathered this intelligence through its Department of Commerce and since it is entitled under WTO US had to act accordingly. Kirk said that as Asian powerhouses add huge burden on other WTO members the delinquent countries have to be transparent with the international trade body.