India stands firm against allegations made by the US and Australia at the WTO regarding its sugar subsidies breaching WTO norms. The joint counter notification submitted by the two countries was met with strong opposition from India. The dispute revolves around the calculation methodology used for the subsidies and the choice of using the Indian rupee for the calculations.
During a recent agriculture committee meeting at the WTO, India vehemently defended its stance on the issue. The US and Australia claimed that India’s market price support on sugarcane exceeded the permissible limit set by the WTO’s Agreement on Agriculture. The dispute dates back to 2018 and remains unresolved as India has appealed the case to the non-functional Appellate Body.
India objected to the use of the Indian rupee for calculations, citing the currency’s vulnerability to inflation. The country also clarified that the notifications on domestic support did not include information on sugarcane procurement as it was done solely by private sugar mills, not the government.
Brazil, Canada, EU, and other countries supported the US-Australia joint counter notification, emphasizing the importance of timely notifications on subsidies. However, India argued that it was not obligated to provide such notifications and questioned the basis for the calculations presented by the US and Australia.
According to the US-Australia calculations, India’s Market Price Support for sugar exceeded the permitted level by over 90% for the years 2018-2022. This discrepancy raised concerns among the accusing countries, leading to a heated debate at the WTO meeting.
India’s refusal to accept the methodology used in the 2018 dispute as a basis for discussion further complicated the issue. The country’s insistence on defending its position and questioning the validity of the calculations put forward by the US and Australia reflected the intensity of the disagreement.
In conclusion, the clash over sugar subsidies at the WTO between India, the US, and Australia highlights the complexities of international trade disputes. The differing perspectives on calculation methodologies, currency choices, and notification requirements underscore the challenges faced by countries in upholding WTO regulations. As the debate continues, it remains to be seen how the conflicting parties will reach a resolution on this contentious issue.