The US on Thursday dragged China and India to the World Trade Organisation (WTO) over subsidy programmes implemented by the world's two fastest-growing economies, with a top Obama administration official terming the situation as intolerable.
"The situation was simply intolerable," said Ron Kirk, US trade representative.
Noting that every member of the WTO is required to come clean on their subsidy programmes on a regular basis, Kirk said China has not notified its subsidy programmes in over five years. "India only recently filed its first notification in almost ten years and even then, notified only three of the many subsidy programmes we know to exist."
"Because China and India have failed to meet their respective obligations, we had to act - as we are entitled to under the WTO rules - and provide the voluminous information we have developed regarding subsidy programmes in these two countries," said Kirk.
{{/usCountry}}"Because China and India have failed to meet their respective obligations, we had to act - as we are entitled to under the WTO rules - and provide the voluminous information we have developed regarding subsidy programmes in these two countries," said Kirk.
{{/usCountry}}The US has submitted information to the WTO identifying nearly 200 subsidy programmes that China has failed to notify according to WTO rules.
Information was also submitted on 50 subsidy programmes in India not previously notified, said Kirk. Through these, the US is seeking the prompt provision of detailed information and data from China and India regarding the operation of these subsidy programmes, he said.
Under WTO rules, every member is obligated to submit information about all of its subsidy programmes on a regula r basis. This information is required so that members may assess the nature and extent of the subsidy programmes of others.