US, Australia accuse India of subsidizing sugarcane beyond WTO limits
India’s sugarcane subsidies have sparked concerns from the U.S. and Australia, exceeding WTO limits at 91.7 to 100.6% of production value. Both countries seek clarification on New Delhi’s support policies, citing its global impact as the second-largest producer and third-largest exporter. The issue was highlighted in a May 6 paper, emphasizing India’s significant role in the sugar market and its implications for international trade, according to Inside U.S. Trade.
India has been subsidizing sugarcane production “vastly” beyond World Trade Organization limits in recent years, the U.S. and Australia argued last week, saying they “seek further clarification” from New Delhi about its support for sugarcane, Inside U.S. Trade reported.
“In a May 6 paper, the U.S. and Australia noted that India is the world’s second-largest producer of sugarcane and third-largest exporter, meaning, they argued, that what happens in the country’s sugar market has ‘significant implications’ for global trade,” Inside U.S. Trade said.
“According to the paper, India has provided 91.7 to 100.6 percent of the value of production in support for sugarcane; the de minimis level of product-specific support allowed for a developing country under WTO rules is 10%.”
Source Link : https://www.thefencepost.com/news/us-australia-accuse-india-of-subsidizing-sugarcane-beyond-wto-limits/
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