November 15, 2024

 

Nations filed counter-notification with WTO against India's wheat subsidies

The US, Argentina, Australia, Canada, and Ukraine have jointly submitted a counter-notification to the World Trade Organisation (WTO) regarding India's domestic support policies, input subsidies, and market support prices for wheat and rice.

 

This marks the latest in a series of counter-notifications initiated by the US, asserting that India lacks transparency about the extent of support it provides to its wheat and rice sectors.

 

Under its WTO commitments, India is permitted to provide subsidies amounting to no more than 10% of the total value of crop production. However, the counter-notification highlights that for the marketing years 2021-22 and 2022-23, India's own data demonstrates a support level that significantly exceeds this limit.

 

The counter-notification argues that India's wheat support schemes promote overproduction, discouraging farmers from diversifying to other crops. This has resulted in substantial public stocks of wheat, which the Indian government has periodically released onto international markets. According to the filing countries, this practice disrupts global trade, harming farmers in exporting nations and their customers.

 

"We appreciate that the US Trade Representative and other country delegations are working to highlight India's trade-distorting wheat support," said Vince Peterson, President of US Wheat Associates. "India's government continues to be out of compliance with its commitments, and its refusal to adjust its policies is obstructing progress on agricultural negotiations at the WTO."

 

Peterson stressed the importance of maintaining international pressure on India to encourage compliance and responsible trading practices.

 

The National Association of Wheat Growers (NAWG) also expressed support for the counter-notification.

 

"Thank you to the USTR for their continued efforts to push India to follow through and come into compliance with their WTO commitments," said Chandler Goule, Chief Executive Officer of NAWG. "While supporting farmers is important, India's approach is the wrong way to do it. Ensuring compliance with WTO rules is essential."

 

This is the third counter-notification filed against India's rice and wheat subsidies. The first, submitted solely by the United States, came in 2018. The second, filed in 2023, was co-sponsored by Australia, Canada, Paraguay, Thailand, and Ukraine.

 

USA Rice highlighted the significance of the latest filing. "This move comes on the heels of India's recent actions to ease its export restrictions, flooding its surplus onto the global market," said Bobby Hanks, Chair of the USA Rice International Trade Policy Committee. "It's clear that other key governments – including developing countries – are alarmed by the economic damage caused by India's behaviour. Hopefully, this brings us closer to a dispute settlement case against India."

 

-      World-Grain