Sugar subsidies could motivate WTO dispute against India

According to Valor, the WTO (World Trade Organization) will have to set up an investigation committee against India because of the subsidies that the country has offered to its sugar producers. The panel was requested by Brazil, Australia, and Guatemala.

The demand is on the agenda of the WTO Dispute Settlement Body (DSB) meeting. Since this is a request that has been made for a second time, India can no longer reject the installation of the panel to examine whether or not its subsidies violate international trade rules.

Brazil states that New Delhi provides subsidies that exceed its commitments in the WTO Agricultural Agreement, in addition to granting prohibited export subsidies. This knocked down international sugar prices and hurt exports from other countries.

Source: Valor

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