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SEZs in the Multilateral Trading System

In: Special Economic Zones in India

Author

Listed:
  • Arpita Mukherjee

    (Indian Council for Research on International Economic Relations)

  • Parthapratim Pal

    (Indian Institute of Management)

  • Saubhik Deb

    (Economist and Independent Consultant)

  • Subhobrota Ray

    (Economist and Independent Consultant)

  • Tanu M. Goyal

    (Indian Council for Research on International Economic Relations)

Abstract

Export-linked subsidies given to the manufacturing units under the Indian SEZ policy can be actionable under the WTO subsidies and countervailing measures (SCM) agreement. Until recently, India was allowed to give certain prohibited subsidies under Annex VII of the SCM Agreement. However, since India may soon graduate from the list of the least Annex VII countries, there is an urgent need to review the subsidies. The WTO is yet to develop a discipline on subsidies in services; therefore, India can continue to subsidise services. Given this scenario, this chapter suggests subsidies and policies that can benefit SEZs without drawing retaliatory actions under the present WTO rules.

Suggested Citation

  • Arpita Mukherjee & Parthapratim Pal & Saubhik Deb & Subhobrota Ray & Tanu M. Goyal, 2016. "SEZs in the Multilateral Trading System," India Studies in Business and Economics, in: Special Economic Zones in India, chapter 0, pages 171-198, Springer.
    • Handle: RePEc:spr:isbchp:978-81-322-2806-6_8
    DOI: 10.1007/978-81-322-2806-6_8
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