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World Trade Organization (WTO) panel rules in favor of Brazil, Australia, require India to comply with trade rules for sugar

WTO panel asks India to comply with post-trade dispute over sugar subsidies

India failed to notify the WTO committee of its sugar export subsidies, in violation of a separate agreement.

A World Trade Organization panel ruled in favor of Brazil, Australia and Guatemala on Tuesday in their trade disputes with India over sugar subsidies and asked New Delhi to comply with the rules. Global.

In cases brought before the WTO in 2019, rival producers allege that India violated WTO rules by providing excessive domestic support and export subsidies for sugar and sugarcane.

The panel said: “We recommend that India bring its non-WTO measures in line with its obligations under the Agreement on Agriculture and the Agreement on SCM (Subsidies and Measures Against resistance).

India, the world’s second-largest sugar producer after Brazil, said late Tuesday that it would appeal the results of the panel’s 115-page report.

However, the appeal will be null and void because the top chamber of the WTO, the Appellate Body, does not have enough judges to operate.

The WTO report said that in the sugar crop year 2014-15 and 2018-19, India provided domestic support to its sugar producers in excess of the 10% maximum that a global agricultural agreement would require. permission request.

It also said that India had failed to notify a WTO panel of its sugar export subsidies, in violation of a separate agreement.

However, the panel did not support one of Australia’s allegations that India maintained a sugar buffer stock that it should have reported to the WTO in the 1990s.

The Department of Trade and Industry said in a statement that the panel’s report was “unacceptable” and would not affect ongoing sugar policies. It said the WTO’s findings were “erroneous” and “without reason”.

Brazil’s sugar industry group Unica said the report noted trade distortions caused by India’s sugar policy.

It said Brazil and India have been cooperating on issues such as ethanol use from sugarcane and believes both countries will find a “cooperative solution” to the problem.

WTO decisions can take time to have any impact on trade. But if the decisions are upheld after appeal, the winning party could be awarded retaliatory measures, such as imposing higher tariffs on goods imported from the convicted country.

https://www.ndtv.com/business/world-trade-organization-wto-panel-rules-in-favor-of-brazil-australia-tells-india-to-comply-with-trade-rules-for-sugar-2651629 World Trade Organization (WTO) panel rules in favor of Brazil, Australia, require India to comply with trade rules for sugar

Emma James

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