India vetoes against Brazil for WTO presidency

According to Valor, India has vetoed Brazil for the presidency of the multilateral fishing subsidy sector at the World Trade Organization (WTO).

If India’s position is maintained, it may increase diplomatic tension between the two countries that began with Brazil’s decision to give up the developing country special and differential treatment (S&D), something that US President Donald Trump again demanded from emerging countries, such as India and Brazil.

During his March visit to the United States, President Jair Bolsonaro bargained with Trump that Brazil has given up this WTO treatment in exchange for US support to join the Organization for Economic Cooperation and Development (OECD).

S&D means more time for a country to implement trade commitments, lower import tariff cuts, and more subsidies for its producers, for example.

In the WTO, India, China, and South Africa, in particular, insist that S&D is an inalienable right of developing countries, without distinguishing between them.

Yet the US wants to change the list of countries that call themselves “developing” and reap the benefits of S&D in the WTO, pointing out rich countries that benefit from the mechanism, such as the United Arab Emirates, Qatar, Hong Kong, Singapore, Mexico, Korea, South, Turkey, and China.

India has also been denounced by Brazil in the WTO for illegal aid recently for giving more and more subsidies to its sugar producers, which knocked down the price of the commodity.

Source: Valor

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