New Delhi: World Trade Organizational Dispute Panel (WTO) on Tuesday recommend that India’s support steps for the sugar sector are not consistent with global trade norms, the findings that New Delhi said “truly unacceptable” for the country.
In 2019, Brazil, Australia and Guatemala dragged India into the wto dispute resolution mechanism that accused the subsidy of New Delhi sugar for farmers was not consistent with the rules of global trade.
Brazil is the largest sugar manufacturer and exporter in the world.
The WTO circulates a panel report in the case carried by Brazil, Australia and Guatemala in ‘India – steps on sugar and sugar cane’, according to a statement by the organization.
Provide a separate conclusion and recommendation about complaints by three countries, the WTO panel states that “we find that India acts inconsistent with its obligations under Article 7.2 (b) Agricultural Agreement”.
Recommend that India brings “WTO-inconsistency” to fit its obligations under the agricultural agreement.
“We conclude that, as far as calculated steps are inconsistent with certain provisions of the agricultural agreement, they have canceled or disrupted the benefits obtained by Brazil in the agreement”.
Commenting on developments, India said that there would be no impact of the WTO panel findings about sugar in one of the existing and sustainable Indian policy steps in the sugar sector.
India has initiated all steps needed to protect their interests and appeal to the WTO on the report, to protect the interests of farmers, an official statement said.
It is said that these countries have “misunderstood” that domestic support provided by India to sugar cane producers is more than the limits permitted by the WTO and India providing export subsidies that are prohibited from sugar mills.
The panel in the report has made certain “mistaken” findings about the Indian scheme to support the manufacturer and export of sugar cane.
The findings “truly unacceptable” to India, he said adding panel findings did not make sense and were not supported by the WTO rules.
“The panel has also avoided the main issues that are required to determine.
Likewise, the findings of the panel on the alleged export subsidy damage logic and thought.
India believes that its steps are consistent with their obligations under the WTO agreement,” he added.
According to the WTO rules, WTO members or members can submit cases in a Geneva-based multilateral body if they feel that certain actions are against WTO norms.
Bilateral consultation is the first step to resolve disputes.
If both sides cannot solve problems through consultation, both can approach the formation of the dispute resolution panel.