The World Trade Organization’s dispute settlement body has set up a panel to examine the US complaint against certain export-subsidy measures by India as both the sides failed to resolve the issue at the consultation level, an official said.

In March, the US dragged India to the global trade body’s dispute settlement mechanism over export subsidies, saying that these incentives were harming American companies.

“The process of composition of the dispute panel is over. The working procedure and the time table for the panel proceedings has been circulated,” the official added.

The US has requested for the establishment of a dispute panel to examine the allegations on India’s export incentive measures.

Seeking consultation under the aegis of the WTO is the first step of the dispute settlement process. If the two nations are not able to reach a mutually agreed solution through consultation, the complainant can request for a WTO dispute settlement panel to review the matter.

The US has challenged India’s export subsidy programmes, such as the Merchandise Exports from India Scheme, in the WTO, asserting that these initiatives harm its companies by creating an uneven playing field.

They have stated that all WTO members, including India, are required to provide subsidies consistent with the provisions of the WTO’s agreement on subsidies and countervailing measures.