The U.S. is challenging India's export subsidy programs at the World Trade Organization because they allow the country's exporters to unfairly undercut U.S. companies, U.S. Trade Representative Robert Lighthizer announced Wednesday.

“These export subsidy programs harm American workers by creating an uneven playing field on which they must compete. USTR will continue to hold our trading partners accountable by vigorously enforcing U.S. rights under our trade agreements and by promoting fair and reciprocal trade through all available tools, including the WTO," Lighthizer said.

India, a long-standing U.S. ally, has an official exception to WTO rules regarding the subsidies. Lighthizer argued that the exemption was only for developing economies and that India should no longer qualify for it.

The complaint allows the U.S. to request a WTO dispute settlement panel should India not agree to change its export policies.

A representative for the Indian Embassy could not be reached for comment.