Brazil considers dropping complaint logged with WTO over India’s sugar subsidies

On a visit to India, President Jair Bolsonaro hinted at a possible turnaround in Brazil`s dispute with India logged with the WTO (World Trade Organization).  The issue is regarding subsidies given by the Indian government to its farmers which has encouraged the international price of sugar to drop.

After a meeting with the Indian Prime Minister, Narendra Modi, and asked about the issue, Bolsonaro replied: “He [Modi] told me that only 2% of Indian sugar is exported. This is a small amount. I have asked Ernesto Araújo [Foreign Minister] for a possible review of our position on this, ”said the president, who added that the country will not demand anything in return.

WTO dispute

Brazil had filed a petition with the WTO against India, which offers government aid for the production and export of sugar. India, for its part, has plans to export 5 million tons of sugar from the 2018/19 harvest, offering subsidies that are linked to export performance.

Bilateral agreements

On a visit to India, last Saturday Bolsonaro participated in a ceremony of exchange between Brazil and India at Hyderabad House in New Delhi, where fifteen documents were signed between the two countries which included cooperation agreements and memoranda of understanding in several areas.  These are listed below:

1) Action Plan to Strengthen the Strategic Partnership between Brazil and India
2) Investment Cooperation and Facilitation Agreement (ACFI)
3) Memorandum of Understanding on Cooperation in the Area of ​​Cybersecurity
4) Social Security Agreement
5) Memorandum of Understanding on Cooperation in Bioenergy
6) Memorandum of Understanding on Geology and Mineral Resources
7) Memorandum of Understanding on Cooperation in Areas of Health and Medical Sciences
8) Memorandum of Understanding for Cooperation in the Area of ​​Traditional Medicine and Homeopathy
9) Memorandum of Understanding between Ministries of Citizenship for Early Childhood
10) Memorandum of Understanding for Cooperation in the Oil and Natural Gas sector
11) Executive Cultural Exchange Program (2020-2024)
12) Scientific and Technological Cooperation Program (2020-2023)
13) Mutual Legal Cooperation Agreement in Criminal Matters
14) Memorandum of Understanding on Cooperation to establish Center of Excellence in India to Conduct Bioenergy Research
15) Collaboration in the area of ​​Livestock and Dairy Production

Brazil to export sesame

On Monday 27th January, the Minister of Agriculture, Livestock and Supply, Tereza Cristina, also announced that Brazil will export sesame seeds to India and will import corn seeds from it.  “I bring a benefit to Brazil, which is for it to begin exporting sesame seeds to India – a major producer of this commodity. Brazil will contribute to supplying the demand for sesame, which is important to the new culture that Brazil has been developing,” said the minister.  In return, Brazil will import corn seeds from India. “We are open to importing corn seeds from India, thus bringing in Indian technology. This will be very important for the beginning of cooperation between our governments,” she explained.

Sources: Valor Econômico, Federal Government and Ministry of Agriculture

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