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United States Trade Representatives (USTR)

2020 JUL 3

Preliminary   > Economic Development   >   Indian Economy and Issues   >   India-USA

WHY IN NEWS?

The office of the United States Trade Representatives (USTR) has updated its list of developing and least-developed countries, removing India from the list of countries that are designated as developing.

About USTR list of developing and least-developed countries

  • In the Uruguay Round Agreements Act (URAA), the US Congress had amended the CVD (Countervailing Duties) law in order to confirm US obligations under the World Trade Organisation (WTO) Agreement on Subsidies and Countervailing Measures (SCM).
  • Under this SCM agreement, countries that had not yet reached the status of a developed country were entitled to special treatment for purposes of countervailing measures.
  • This meant that imports from the member countries included in the list by USTR were subject to different thresholds for determining if countervailing subsidies are “de minimis” (too trivial or minor to merit consideration) and whether import volumes are negligible.
  • Further, as per the Tariff Act of 1930, Congress delegated the responsibility to designate those WTO members whose imports would be subject to these special thresholds to the USTR.
  • Until February 10, 2020, India was on the USTR’s list of developing countries, making it eligible for preferential treatment against CVD investigations and de minimis thresholds. It will no longer get this benefit.
  • Other countries that were removed from the list include Thailand, Vietnam, Brazil, Indonesia and Malaysia.

Prelims Question

Q. With reference to the United States Trade Representatives (USTR), which of the following statements is/are correct?
1. It maintains a list of developing and least-developed countries which may receive special treatment for purposes of countervailing measures
2. India has been removed from the list of developing countries by the office of the USTR
Select the correct answer using the code given below:
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2

Answer to the Prelims Question