COMMODITY
WTO’s dispute settlement body to set up panel to review India's sugar subsidies
Aug-19-2019

In order to review India's support measures for the sugar sector, the World Trade Organization’s (WTO) dispute settlement body has agreed to set up panel requested by Brazil, Australia and Guatemala. These three countries had sought establishment of a dispute panel under the aegis of the WTO in a case against India's sugar subsidies to farmers. India has stated that the measures were consistent with its WTO obligations. Earlier, these countries have dragged India into the WTO's dispute settlement mechanism alleging that New Delhi's sugar subsidies to farmers are inconsistent with global trade rules.

The WTO said these countries have expressed their concerns that India's support exceeds the levels of domestic support allowed to India under the WTO's Agriculture Agreement and that India was granting prohibited export subsidies. They have alleged that the measures have negative impact on global market prices for sugar and their sugar producers.

The three countries had asked that a single panel be established to review the claims as the three complaints deal with essentially the same subject matter and were filed at the same time. India also reiterated that the measures were consistent with its WTO obligations. It has added that the support measures are intended to provide for, and avoid the over-exploitation of, 35 million vulnerable, resource-poor farmers in the country.

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