A World Trade Organization (WTO) panel has requested India to withdraw its subsidies below the Production Assistance, the Buffer Stock, and the Marketing and Transportation Schemes.
Ruling in favour of Brazil, Australia and Guatemala of their commerce dispute with India over sugar subsidies, the WTO panel mentioned, “We recommend that India bring its WTO-inconsistent measures into conformity with its obligations under the Agreement on Agriculture and the SCM Agreement.”
“We recommend that India withdraw its prohibited subsidies under the Production Assistance, the Buffer Stock, and the Marketing and Transportation Schemes within 120 days from the adoption of our Report,” the panel mentioned.
It requested India to withdraw the subsidies directly inside a time-period specified by the Panel. The panel’s 115-page report, ‘India — Measures Concerning Sugar and Sugarcane’, was circulated to members on Tuesday.
Responding to the report, the Commerce and Industry Ministry mentioned Tuesday that the findings of the Panel are “completely unacceptable” to India. “There would be NO impact of WTO Panel’s findings on Sugar on any of India’s existing and ongoing policy measures in sugar sector,” it mentioned, including, “India has initiated all measures necessary to protect its interest and file an appeal at the WTO against the report, to protect the interests of its farmers.”
Referring to complaints by three nations — Australia, Brazil and Guatemala — towards India over its coverage measures within the sugar sector, on the WTO in 2019, the Ministry mentioned, “They had wrongly claimed that domestic support provided by India to sugarcane producers is in excess of the limit allowed by the WTO and that India provides prohibited export subsidies to sugar mills.”
“The Panel issued its report on 14 December 2021 in which it has made certain erroneous findings about our schemes to support sugarcane producers and exports,” it added.
“The findings of the Panel are completely unacceptable to India. The Panel’s findings are unreasoned and not supported by the WTO rules. The Panel has also evaded key issues which it was obliged to determine. Similarly, the Panel’s findings on alleged export subsidies undermines logic and rationale,” the Ministry mentioned.
“India believes that its measures are consistent with its obligations under the WTO agreements,” it added.
In 2019, Brazil, Australia and Guatemala had approached the WTO complaining towards India for offering alleged assist in favour of producers of sugarcane and sugar (home assist measures), in addition to all export subsidies that India allegedly offers for sugar and sugarcane (export subsidy measures).
On July 11, 2019, Australia requested the institution of a Panel and on August 15, 2019, the Dispute Settlement Body (DSB) established the panel.
‘FDI policy can be strengthened’
New Delhi: WTO Director General Ngozi Okonjo-Iweala mentioned Tuesday India’s international direct funding (FDI) coverage “remains ambiguous and can be strengthened,” noting that firms face prolonged approval processes to speculate right here with “targeted restrictions that remain in place in strategic sectors.”
She mentioned that persevering with on the reform path would improve the competitiveness of Indian companies each in India and overseas. —ENS
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