★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★Open research. Global perspectives.
Political Science Law OPEN ACCESS

HARMONISATION OF THE FUNCTIONING OF SPECIAL ECONOMIC ZONES UNDER WTO RULES: THE INDIAN CASE

Irmatov Mukhiddin
Billion group, Business development manager, Uzbekistan
tajpslc 2022
VOL. 4 / NO. 07 JULY
VOLUME 4
ISSUE 07
YEAR 2022
PAGES 76-84

Abstract

Every year, the number of special economic zones increases. On the one hand, this is a great chance to bust the state’s economy and attract investors. On the other hand, there is a probability to create unfair market competition. This may place other WTO members in an unfavourable position, posing a mitigation risk. To avoid this, the government should implement only special economic zone schemes following WTO regulations. This article will study which incentives are allowed by the WTO law and prohibited. Apart from this, will be reviewed India’s case as an example of the transformation from special and differential treatment to the generally applicable WTO rules. This will include an analysis of the regulations, WTO case law, and suggestions for future regulatory reform.

Keywords

Special economic zones world trade organisation SEZ in India

Downloads

Download data is not yet available.

References

  1. P. Pal, Special Economic Zones in India and the WTO Agreement on Subsidies and Countervailing Measures: An Uneasy Coexistence, 2016 DOI: 10.13140/RG.2.1.3059.3043, p. 1 https://www.researchgate.net/publication/291246781_Special_Economic_Zones_in_India_and_the_WTO_Agreement_on_Subsidies_and_Countervailing_Measures_An_Uneasy_Coexistence/related
  2. J. Stiglitz, A. Charlton A Development Round of Trade Negotiations? 2004 https://www.researchgate.net/publication/253205208_A_Development_Round_of_Trade_Negotiations
  3. H-J. Chang, Kicking away the Ladder? Policies and Institutions for Economic Development in Historical Perspective. London: Anthem Press, 2002 https://www.jstor.org/stable/40722165#metadata_info_tab_contents
  4. P. Pal, Special Economic Zones in India and the WTO Agreement on Subsidies and Countervailing Measures: An Uneasy Coexistence, 2016 DOI: 10.13140/RG.2.1.3059.3043, p. 8
  5. 2019 National Trade Estimate Report on Foreign trade barriers http://trade.gov/enforcement/
  6. DS436: United States — Countervailing Measures on Certain Hot-Rolled Carbon Steel Flat Products from India https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds436_e.htm
  7. S. Creskoff, P. Walkenhorst. Achieving WTO Compliance for Special Economic Zones in Developing Countries. PREM Notes; No. 134. World Bank, Washington, DC. 2009 © World Bank https://openknowledge.worldbank.org/handle/10986/11122 p. 10
  8. FIAS Special Economic Zones: Performance, Lessons Learned, and Implications for Zone Development. 2008 The World Bank, Washington DC, E3. https://documents1.worldbank.org/curated/en/343901468330977533/pdf/458690WP0Box331s0April200801PUBLIC1.pdf
  9. D. Madani, A Review of the Role and Impact of Export Processing Zones. World Bank Development Research Group Policy Research Working Paper 2238 (November) https://elibrary.worldbank.org/doi/abs/10.1596/1813-9450-2238
  10. J. P. Cling, and G. Letilly. Export Processing Zones: A Threatened Instrument for Global Economy Insertion? 2001 https://www.researchgate.net/publication/44961691_Export_Processing_Zones_A_threatened_instrument_for_global_economy_insertion/citations
  11. A. Schrank, Export Processing Zones: Free Market Islands or Bridges to Structural Transformation?” 2001 Development Policy Review, 19(2):223–242. https://www.researchgate.net/publication/229718330_Export_Processing_Zones_Free_Market_Islands_or_Bridges_to_Structural_Transformation
  12. P. Warr, Export Processing Zones: The Economics of Enclave Manufacturing. 1989 World Bank Research Observer 4, No. 1, (January), 65–87. https://www.jstor.org/stable/3986349
  13. K. Jayanthakumaran, K. An Overview of Export Processing Zones: Selected Asian Countries. 2002 University of Wollongong Department of Economics Working Paper Series https://ro.uow.edu.au/commpapers/800/
  14. R.D. Sinclair, Export Processing Zones: An Ingredient for Successful Liberalization. 2001 Working Paper, The Maxwell School of Syracuse University.
  15. F. Defever, J. D. Reyes, A. R. Miguel, E. Sánchez ‐ Martín. Special Economic Zones and WTO Compliance: Evidence from the Dominican Republic. Economica, Vol.86, Issue 343. p. 532-568 https://doi.org/10.1111/ecca.12276
  16. A. U. Santos Paulino, F. Bartalucci, A. Chaudhary, S. Frick, and I. Radouane. UNCTAD Handbook on special Economic zones in Africa. Towards economic diversification across the continent 2021 https://www.pacci.org/handbook-on-special-economic-zones-in-africa-towards-economic-diversification-across-the-continent/
  17. Vokhidova, M. Kh. Impact of WTO membership on special economic zones, 2020 Economics and Innovative Technologies: Vol. 2020: No. 3, Article 5. https://uzjournals.edu.uz/iqtisodiyot/vol2020/iss3/5
  18. P. Pal, Special Economic Zones in India and the WTO Agreement on Subsidies and Countervailing Measures: An Uneasy Coexistence, 2016 DOI: 10.13140/RG.2.1.3059.3043 https://www.researchgate.net/publication/291246781_Special_Economic_Zones_in_India_and_the_WTO_Agreement_on_Subsidies_and_Countervailing_Measures_An_Uneasy_Coexistence/related
  19. S. Shadikhodjaev, The WTO Agreement on Subsidies and Countervailing Measures and Unilateralism of Special Economic Zones, Journal of International Economic Law, Volume 24, Issue 2, June 2021, Pages 381–402, https://doi-org.eres.qnl.qa/10.1093/jiel/jgab013
  20. F. Defever, A. Riano Subsidies with export share requirements in China," Journal of Development Economics”,
  21. 126, 33{51, 2017 https://www.sciencedirect.com/science/article/pii/S030438781630102X
  22. Agreement on Subsidies and Countervailing Measures, Apr. 15, 1994, Marrakesh Agreement Establishing the World Trade Organization, Annex 1A, 1869 U.N.T.S. 14 https://www.wto.org/english/docs_e/legal_e/24-scm.pdf
  23. Agreement on Subsidies and Countervailing Measures, Apr. 15, 1994, Marrakesh Agreement Establishing the World Trade Organization, Annex 1A, 1869 U.N.T.S. 14 https://www.wto.org/english/docs_e/legal_e/24-scm.pdf
  24. D. Marjanac, A.M. Alfirević, Special economic zones: the impact and implications on economic growth with reference to the Chinese model. Acta Economica, 2020, 18(32), 85–106. https://doi.org/10.7251/ACE2032085M
  25. SEZ Rules incorporating amendments upto July, 2010 http://sezindia.nic.in/upload/uploadfiles/files/14_SEZ_Rules_July_2010.pdf
  26. Dezan Shira & Associates India’s Special Economic Zones: A Primer (2021) https://www.india-briefing.com/news/guide-indias-special-economic-zones-9162.html/#thedevelopmentofsezsinindiaHeader
  27. Agreement on Subsidies and Countervailing Measures, Apr. 15, 1994, Marrakesh Agreement Establishing the World Trade Organization, Annex 1A, 1869 U.N.T.S. 14 art. 27.2. https://www.wto.org/english/docs_e/legal_e/24-scm.pdf
  28. 2019 National Trade Estimate Report on Foreign trade barriers http://trade.gov/enforcement/
  29. DS 541 Export Related Measure Report https://www.wto-ilibrary.org/content/reports/25189832/237
  30. Agreement on Subsidies and Countervailing Measures, Apr. 15, 1994, Marrakesh Agreement Establishing the World Trade Organization, Annex 1A, 1869 U.N.T.S. 14 art. 27.5 https://www.wto.org/english/docs_e/legal_e/24-scm.pdf
  31. Panels Report in the case DS541: India — Export Related Measures World Trade Organisation 31 October 2019 1907313 WT/DS541/R https://www.wto.org/english/tratop_e/dispu_e/541r_e.pdf
  32. ELP ELP export update Summary report in India Export related measures (DS541) (2019) https://elplaw.in/wp-content/uploads/2019/11/ELP-Export-update-Summary-of-the-panel-report-in-India-Export-related-measures-DS541.pdf
  33. India – Export Related Measures – Report of the Panel para. 7.204 https://docs.wto.org/dol2fe/Pages/FE_Search/FE_S_S006.aspx?Query=(@Symbol=%20wt/ds541/*)&Language=ENGLISH&Context=FomerScriptedSearch&languageUIChanged=true#
  34. India – Export Related Measures – Report of the Panel para. 7.222 https://docs.wto.org/dol2fe/Pages/FE_Search/FE_S_S006.aspx?Query=(@Symbol=%20wt/ds541/*)&Language=ENGLISH&Context=FomerScriptedSearch&languageUIChanged=true#
  35. India – Export Related Measures – Report of the Panel para. 7.524 https://docs.wto.org/dol2fe/Pages/FE_Search/FE_S_S006.aspx?Query=(@Symbol=%20wt/ds541/*)&Language=ENGLISH&Context=FomerScriptedSearch&languageUIChanged=true#
  36. J. Nedumpara, S. Janardhan Developing Countries and Export Subsidies: WTO Panel’s report in DS541 (2019) http://regulatingforglobalization.com/2019/11/15/developing-countries-and-export-subsidies-wto-panels-report-in-ds541/